PRECIOUS METALS | Iran's Energy Facility Retaliation Threatens Oil Prices, Pressures Gold and Silver

Iran has announced plans to retaliate against attacks on its energy facilities, targeting oil infrastructure in three Middle Eastern countries. According to Jin10, this development has led to a rise in oil prices and pressure on gold and silver markets. On Wednesday, spot gold fell over 3%, reaching its lowest level in more than a month, while spot silver dropped over 4%, marking a one-month low. Brent crude oil briefly surpassed $105 per barrel. David Meger, Director of Metals Trading at High Ridge Futures, noted that the ongoing conflict has driven energy prices higher, fueling inflation and potentially preventing the Federal Reserve from cutting interest rates, which continues to weigh on gold prices. Despite the demand for safe-haven assets, other pressures are overshadowing the appeal of gold. The conflict involving Iran has persisted for nearly three weeks with little sign of de-escalation, keeping benchmark Brent crude futures above $100 per barrel. As energy costs rise, they are impacting broader economic sectors, potentially exacerbating inflation.