ING’s commodities strategists Ewa Manthey and Warren Patterson report that Gold rallied as hopes of a US-Iran deal pushed Oil prices lower, easing inflation concerns and weighing on yields while the Dollar stayed near pre-war levels. They note that Silver outperformed, supported by lower yields and stronger risk appetite, and expect Precious Metals, including Silver, to stay sensitive to US-Iran developments, Oil prices and Federal Reserve rate expectations.

Gold rallied, Silver outperformed

"Gold and silver also rallied as hopes of a US-Iran deal pushed oil prices lower and eased inflation concerns."

"Lower energy prices weighed on yields, while the dollar stayed around pre-war levels, supporting non-yielding assets."

"Gold jumped 3%, climbing back above $4,700/oz, reversing part of its recent war-driven weakness. The potential easing in energy prices gives the Fed more room to cut rates, which is positive for gold."

"Silver outperformed, supported by lower yields and stronger risk appetite. Precious metals will remain sensitive to US-Iran headlines, oil prices and Fed rate expectations. A sustained fall in energy prices would keep gold and silver supported, while any setback in talks could reverse part of the move."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)