Gold jumps 1.8% and silver 3.66% as oil falls on Iran signals
Spot gold rose 1.80% to $3,945.70/oz and silver gained 3.66% to $50.940 as oil fell more than 4% after Iranian signals.
Spot gold jumped $67.90, or 1.80%, to $3,945.70 per ounce, while silver rose $1.810, or 3.66%, to $50.940, according to Kitco News' morning report.
The rise came as oil prices fell more than 4%, with West Texas Intermediate trading near $99.58 a barrel and Brent around $108.55, after Iran said it could reopen the Strait of Hormuz and resume nuclear talks within two days.
The report noted that futures markets priced roughly a 75% chance of another US rate increase before the end of the year, which keeps pressure on the precious metal despite the current buying wave.
Observers say the drop in oil eases energy-related inflation concerns, giving gold room to rebound after a sharp selloff, but continued rate-hike expectations limit the strength of the rally.
What do these terms mean?
Spot gold: The price at which the metal trades immediately in the global market rather than for delivery on a later date, and the most closely watched reference for gold prices.
Troy ounce: A unit of weight for precious metals equal to about 31.1 grams, used to price gold and silver globally.
West Texas Intermediate: A type of US crude oil used as a benchmark for pricing oil in global markets.
Futures contracts: Agreements to buy or sell a commodity at a set price today for execution on a later date, used for hedging or speculation.
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