Gold and Silver Rebound as Oil Prices Ease on Iran Diplomacy

Spot gold rose 1.80% to $3,945.70 per ounce, while silver gained 3.66% to $50.940, capitalizing on a softer U.S. dollar and a retreat in Treasury yields. The rebound arrives after gold endured its worst monthly performance since 2008, driven by aggressive Federal Reserve policy expectations. Traders are currently pricing in a 75% probability of further rate hikes before the end of the year, keeping the market on edge despite today's gains.

Energy markets reacted sharply to Iran’s signal that it might reopen the Strait of Hormuz and resume nuclear negotiations, provided the U.S. eases naval blockades and sanctions. While Brent crude retreated toward $108.55 and WTI fell below $100.00, the geopolitical landscape remains fragile. Ongoing tensions involving regional military threats suggest that a significant risk premium will likely persist in energy costs, capping the upside for precious metals as investors balance bargain hunting against the reality of sustained, high-interest-rate environments.