Gold and Silver Prices Hit New 8-Month Lows as Dollar, Oil Rise

GOLD and SILVER PRICES sank on Thursday, both setting new 8-month lows in London's bullion market as mixed US economic data combined with a fresh jump in crude oil prices − driven by worsening violence and threats between the US and Iran − to keep US interest-rate expectations hawkish.

Silver bullion lost $1.50 to fix around $56.45 per troy ounce at London's midday auction, its lowest since the last day of November, before dropping another $1 in spot-market trading.

London gold prices meanwhile lost 1.6% from Wednesday afternoon to set a 3pm benchmark beneath $4000 for the first time since early November, fixing around $3995 per ounce.

After cutting exposure to 'neutral' at gold's all-time record highs above $5000 in January and February, "There's a plan to go back to overweight in gold," Bloomberg today quotes Ian Samson of global investment manager Fidelity's multi-asset portfolio team.

"The question is when. Tactically, there are as many headwinds as tailwinds."

Global stock markets today fell alongside gold and silver, as did government bond prices, while the US Dollar rallied from a 1-month low on its trade-weighted DXY index against the rich world's other major currencies, after the US Navy attacked an oil tanker heading to Iran near the Strait of Hormuz.

Already opening a "new front" in the Middle East war by attacking Saudi Arabia-backed Yemen this week, Tehran today vowed that "all infrastructure in the region will be crushed" if Washington pursues President Trump's threat to hit power plants and bridges in the Islamic military dictatorship.

Israel meanwhile launched a fresh assault in southern Lebanon, extending the military action that's continued since agreeing a "ceasefire" at the start of June.

Iran-backed Hamas called on Palestinians in the West Bank to use "resistance and steadfastness [in] confronting Israeli occupation policies and settlement expansion."

"All of this is fraught with continuing negative consequences for the global economy," said Kremlin spokesman Dmitry Peskov of the US-Iran war on Thursday as Russian oil companies reportedly asked India to supply it with gasoline amid Ukraine's continued attacks on the world No.3 oil producer's own refineries.

Global oil prices rose for the 4th day this week, and US WTI crude rose above $80 per barrel for the first time since mid-June.

Last month's drop in US oil prices saw overall retail sales rise for the 8th month running, new data said Thursday, expanding another 0.2%.

Pending home sales fell hard in contrast, down 5.4% after rising 3.5% in May. But latest weekly data showed a drop in both new and continuing US jobless benefit claims.

Like silver, "Gold could remain rangebound in the near term," says a note from Australasian bank ANZ, "as expectations for at least one Federal Reserve rate hike this year continue to limit upside."

End-year US interest rate expectations today rose above 3.90% according to the CME derivatives exchange's FedWatch tool, with market consensus predicting one rise of 0.25 points from the Federal Reserve's policy-making FOMC committee before Christmas 2026.