Rising Energy Price Is the Death of Gold and Silver (Why USD And Oil Are Up While Silver and Gold Are Down During War Time)

Gold falls in early trade as rising energy prices spurred by the Middle East conflict exacerbate inflation worries. “This has resulted in a rise in U.S. Treasury yields to multi-week highs, weighing on non-yielding assets such as gold,” Exness’ Eric Chia says in an email. Also, “risks of persistent high energy prices could limit the Fed’s ability to shift toward a more accommodative stance, keeping gold sensitive to geopolitical developments,” the financial markets strategist adds.

Unique War

Nung nagkagyera sa Russia at Iran ay grabe ang pag-akyat ng gold at silver. The same was true nung nagkaroon ng gyera between Israel and Hamas.

Ang gyera ng Iran, US at Israel na ito ngayon ay naging unique dahil heavily involved ang oil/energy sector.

Higher energy prices and mounting inflationary pressures have lowered expectations that the US Federal Reserve and other major central banks will cut interest rates, posing a headwind for non-yielding precious metals.