The S&P 500 climbed 1.5% to 7,764.70, while the Nasdaq Composite gained 2.3% as markets responded to easing tension in the Middle East. Oil prices fell for the fourth consecutive session, with Brent crude settling at $100.34 and WTI at $95.78, as Saudi shipments through the Strait of Hormuz recovered to 2.9 million barrels per day. This stabilization in energy supply redirected capital toward riskier assets, leaving gold down 0.95% to $4,337.20 and silver lower by 0.44% at $66.08.
Gold and Silver Retreat as Equity Markets Rally and Geopolitical Risk Fades
Spot gold and silver prices softened in Monday trading as a robust rally in North American equity markets and a dip in oil prices diminished safe-haven demand. Investors shifted focus toward a firm U.S. dollar and a resilient Federal Reserve policy, effectively cooling the recent geopolitical premium surrounding the Strait of Hormuz.
Despite the retreat, the broader economic landscape remains defined by restrictive interest rates and fiscal pressure. The FOMC’s recent target range of 3.75% to 4.00% and an 88% market probability of a December rate hike continue to anchor Treasury yields near 5%. Rania Gule, market analyst at XS.com, noted that conflicting fundamental factors—ranging from persistent central bank demand to rising borrowing costs—remain the primary drivers of current price action. With U.S. public debt reaching $31.3 trillion, the structural weight of federal debt service continues to act as a significant headwind for non-yielding assets, keeping traders focused on the 10-year Treasury note as the definitive macro constraint.
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