Gold and Silver Fall as Iran War Damps Rate-Cut Hopes
An attendant weighs a one kilogram gold bar at a bullion dealer in Budapest, Hungary.
Photographer: Akos Stiller/BloombergGold sank for a seventh session as the Middle East drove oil prices higher and reduced prospects for a US interest-rate cut in the near term.
Gold fell as much as 6.6% before paring losses, with the decline putting it on track for its longest losing streak since 2023. Roughly three weeks into the Iran war, soaring crude and gas prices are raising inflationary risks, making rate cuts by the Federal Reserve and other central banks less likely. That’s a headwind for the metal, which doesn’t pay interest. Silver plunged more than 13% before trimming losses.