Gold and Silver Recover as Falling Oil Eases Inflation Fears
Precious metals rose after Friday’s sharp losses as softer crude prices eased inflation concerns, while traders weighed interest-rate risks.
Key takeaways
- Gold and silver futures rose in Monday trading after sharp losses on Friday.
- Falling crude prices helped ease inflation concerns, according to market analysts.
- US interest-rate futures indicated a 72% chance of a December rate increase, according to one report.
Gold and silver futures rebounded Monday after sharp losses on Friday. As of 06:31 UTC, the December gold contract traded at $3,916.40, up 0.45% since its previous close, while silver was at $50.26, up 2%.
Falling crude prices eased inflation concerns and helped support precious metals, according to Giottus.com chief executive Vikram Subburaj. He said gold had dropped 3.7% on Friday and silver nearly 6%.
The softer oil market followed hopes for diplomatic progress involving Iran, according to reports from Borsa Gündem and finanzen.net. Borsa Gündem said December Brent fell 3.2% to around $109 a barrel.
The recovery faces headwinds from interest-rate expectations. US interest-rate futures showed a 72% probability of a 25-basis-point Federal Reserve increase in December, according to Business Standard.
Subburaj said the US employment report due November 6 would be the next key market trigger. The sustainability of the rebound also depends partly on whether expectations for tighter monetary policy recede, he said.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
