Gold and silver firmer but Fed hike risk keeps metals capped Spot gold and silver prices rose on Monday after the close, driven by a combination of factors including falling crude oil prices and higher Treasury yields. However, the potential for Federal Reserve rate hikes in the coming months continues to limit the upside for precious metals. At the time of writing, gold was trading near $4,190.60 per ounce, up 1.21%, while silver was near $65.21, up 0.47%. The market remains cautious, with the Fed’s June meeting leaving interest rates unchanged but signaling a shift toward tighter monetary policy. The 10-year U.S. Treasury yield climbed to 4.50% from 4.46% late Thursday, reflecting growing expectations of at least one rate hike by year-end. Traders now price a 90% chance of a Fed increase, up from 57% a week earlier. This shift has kept gold and silver under pressure, as higher yields and a stronger dollar weigh on their appeal. Analysts note that while gold benefits from lower oil prices and residual geopolitical uncertainty, these factors are not enough to offset the impact of rising interest rates. Silver, meanwhile, remains vulnerable to weaker industrial demand and a potential slowdown in risk appetite. The weekend U.S.-Iran negotiations added another layer of uncertainty. U.S. Vice President JD Vance described the talks as laying a “good foundation for a successful final deal,” but Iran’s military claimed it had closed the Strait of Hormuz again, a move disputed by U.S. Central Command. The market’s reaction was mixed, with Brent crude falling 3.2% to $77.52 and U.S. crude dropping 2.6% to $73.86. Despite the oil decline, Treasury yields rose as inflation fears linked to the Iran conflict reinforced expectations of Fed tightening. Equity markets also showed a mixed performance. The S&P 500 fell 0.4% to 7,472.#iran #federal_reserve #j_d_vance #u_s_dollar #u_s_treasury
