While gold managed a 0.55% gain, silver struggled under the weight of an oil-shocked market, sliding 1.03% to $59.050. The divergence highlights the conflicting pressures currently dominating the precious metals sector: safe-haven demand for gold clashing with industrial-demand headwinds for silver, all set against the backdrop of volatile energy costs. Brent crude settled 4.1% higher at $104.28 a barrel, a surge tied to intensifying geopolitical friction in the Strait of Hormuz.
Gold Gains as Treasury Auction Cools Yields Amid Oil-Driven Inflation
Spot gold climbed to $4,132.30 an ounce on Thursday, finding support as a successful 30-year Treasury auction pulled yields back from morning highs. The move offered a brief respite for bullion, even as soaring crude prices fueled persistent inflation concerns and reinforced expectations for further Federal Reserve tightening before year-end.
Equities remained under pressure, with the S&P 500 falling 0.5% and the Nasdaq shedding 1.3%. Investors are now looking toward upcoming economic data, specifically September CPI and PPI reports, to gauge whether the cooling labor market—evidenced by 197,000 initial jobless claims—will provide enough cover for the Federal Reserve to shift its stance. For now, the market remains braced for a potential December rate hike, with Fed Governor Christopher Waller signaling continued resolve to combat inflation.
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