Gold and Silver Prices Rise Amid News About Iran – Reuters

The lull in military and political tensions between the U.S. and Iran has led to significant shifts in global financial and commodity markets. 

Iran’s announcement that it was prepared to halt attacks provided Washington takes reciprocal measures and suspends U.S. airstrikes has reduced the threat of a diplomatic and logistical crisis in the Strait of Hormuz. As a result, oil prices fell by more than 5%, easing inflationary pressure, while the U.S. dollar index slipped by 0.2%, making precious metals more attractive to foreign investors.

Against this backdrop, spot gold rose 1% and approached the $4,100-per-ounce mark (to $4,093.34), while August futures in the U.S. climbed to $4,095.60. Other precious metals are also showing positive momentum: spot silver gained 1.7% (to $59.16 per ounce), platinum rose 2.9% (to $1,633.80), and palladium rose by 3.2% (to $1,282.99).

At the same time, the market is awaiting the U.S. Federal Reserve’s meeting. About 34% of analysts anticipate a possible increase in the benchmark interest rate at the upcoming meeting, while the CME FedWatch Tool indicates a 79% probability of a rate hike in September. Experts note that easing inflation fears and expectations regarding the Fed’s decisions are key factors supporting current demand for precious metals.

Source: Reuters.

As a reminder, Trump is considering three scenarios for ending the war with Iran – NYT

The U.S. has postponed a planned large-scale military operation against Iran due to a shortage of interceptor missiles for the Patriot air defense systems.

The UK has commented on Iran’s threats.

Oil prices fell by more than 6% following a pause in hostilities between the U.S. and Iran — Reuters