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[BUSINESS] · United States, Türkiye, India, Saudi Arabia, Yemen · 26 sources

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Gold and silver markets react to Federal Reserve interest rate anticipation

Global commodity markets are reacting to anticipation surrounding the Federal Reserve's upcoming interest rate decision. Spot gold prices have shown volatility, recently trading around the $4,326 per ounce mark, as investors weigh the potential for a 25 basis point rate hike, which markets currently price with a 92.4% probability.

In the United States, the 10-year Treasury yield has climbed above 5%, reaching levels not seen since 2007, exerting pressure on non-yielding assets like gold. Additionally, silver has seen gains, rising 1.36% to reach $64.51 per ounce.

Energy markets are also in flux. While crude oil prices have faced downward pressure due to unexpected increases in US crude inventories, supply risks persist in the Middle East following attacks on Saudi Arabian energy infrastructure. These geopolitical tensions and fluctuating oil prices continue to influence inflationary expectations and, consequently, precious metal demand.

Entities

Bank of England · Bank of Japan · CME FedWatch · Federal Reserve · Gold · JPMorgan Chase · Kevin Warsh · London Metal Exchange · Saudi Arabia · Saudi Aramco · Shanghai · Silver

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