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Analysis: Iran Vows to Strike Oil Facilities in Three Middle Eastern Countries, Oil Prices Soar, Gold and Silver Under Pressure to Decline
Svmuu News Previously, Iran stated it would retaliate for attacks on its energy facilities, designating oil facilities in three Middle Eastern countries as legitimate targets. Oil prices rose in response, while gold and silver came under pressure. Spot gold fell over 3% on Wednesday, hitting its lowest level in over a month; spot silver dropped over 4%, reaching a one-month low; Brent crude oil briefly surpassed $105 per barrel. David Meger, Director of Metal Trading at High Ridge Futures, stated that rising energy prices due to the escalating war have "added fuel to the fire" of inflation, potentially preventing the Federal Reserve from cutting interest rates, which continues to pressure gold prices. There is no shortage of safe-haven demand currently, but other pressures are outweighing this demand for gold. The Iran conflict has persisted for nearly three weeks with little sign of easing, keeping the benchmark Brent crude futures price above $100 per barrel. As rising energy costs ripple through the broader economy, this could, in turn, exacerbate inflation. (Jin10)
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