Fluctuations in Gold and Silver Prices After US Strikes Targeting Iranian Sites Near Hormuz

SadaNews - Gold declined after US strikes in the Strait of Hormuz limited optimism about advances in talks to open the vital waterway, keeping inflation risks high.

The precious metal fell by as much as 0.7% to around $4,526 per ounce, after rising the previous day, amid fears that the strikes would hinder peace talks.

The US Central Command stated that the United States struck missile launch sites in Iran and boats that were attempting to plant mines. Its spokesman, Tim Hawkins, stated that the strikes were defensive and aimed "to protect our forces from threats posed by Iranian forces."

Brent crude rose more than 2% after the strikes elevated the risk of prolonged supply disruptions due to the effective closure of the waterway.

Separately, Israel announced it would intensify strikes in Lebanon against "Hezbollah" while US-Iran talks continue. Iran insisted that a cessation of hostilities in Lebanon be part of any peace agreement.

Hormuz Strikes Reintroduce Inflation Risks

These developments come after US President Donald Trump said on Monday that talks with Iran concerning a temporary deal to extend the ceasefire and ease restrictions on passage through Hormuz "are going well."

The precious metal has dropped about 14% since the conflict began in late February. Traders have increased bets on interest rate hikes after the war pushed energy prices higher and fuelled inflation fears. Higher borrowing costs pressure the yellow metal, which yields no interest.

John Reed, chief strategist at the World Gold Council funded by producers, stated that a sustainable recovery in gold "requires distancing from risky assets."

He added that "gold has a better chance of recovering near the end of the year" even if the conflict ends now, as restoring energy balance takes time.

Spot gold fell 0.7% to $4,540.14 per ounce at 9:33 AM in Singapore. Silver dropped 1.6% to $76.82. Platinum and palladium also decreased. The Bloomberg Dollar Spot Index, a measure of the US currency, was slightly up after falling 0.3% the previous day.

Silver Price

Silver prices were recorded near $76 per ounce.