SerpApi.Org
Gold futures finished roughly flat Monday while silver settled higher for the second consecutive session, as renewed U.S.-Iran escalation pushed Brent crude oil back above $90/bbl, reinforcing inflation concerns despite recent softer U.S. inflation data.
Yields on the benchmark 10-year U.S. Treasury note gained 0.4% and the dollar edged higher, making bullion more expensive for overseas buyers.
Expectations that interest rates will remain higher for longer have boosted the dollar and Treasury yields, likely weighing heavily on gold, XS.com analyst Rania Gule said in a note.
However, gold's recent decline is more likely a temporary repricing process rather than the beginning of a prolonged bear market for the metal, and its structural characteristics continue to make gold an effective hedge against sovereign risk, persistent inflation, and geopolitical uncertainty, while central bank buying should provide long-term support to prices, Gule said.
Meanwhile, AI demand may help silver turn the corner, according to analysts with Forex.com, as "selling pressure could eventually give way to renewed structural demand if investment in artificial intelligence infrastructure regains momentum."
"The current correction therefore represents more than a short-term price move because it may determine where long-term buyers begin rebuilding positions" in silver, Forex.com said in a note.
Front-month Comex gold (XAUUSD:CUR) for July delivery slipped less than 0.1% to $4,010.30/oz, but it still marked the yellow metal's seventh loss in 10 trading sessions, while front-month Comex July silver (XAGUSD:CUR) climbed 1.3% to $56.802/oz, its second straight gain.
ETFs: (GLD), (GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (DUST), (RING), (BAR), (OUNZ), (SGDM), (SGDJ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)
