Gold, silver prices jump up to 4%
What's the story
Gold and silver prices surged on Friday, driven by persistent inflation and ongoing global tensions. The COMEX gold price jumped 2.2% to $4,204.40 per ounce after a volatile week where it hit a more-than-six-month low before recovering. Meanwhile, silver witnessed an even sharper rise of 4.3%, reaching $66.77 per ounce due to both safe-haven demand and its industrial-use outlook.
Market trends
Gold on course for weekly decline
Despite Friday's gains, gold is still on course for a weekly decline. This is mainly due to stronger-than-expected US inflation data, which has reduced expectations of near-term monetary easing by the Federal Reserve. Higher energy costs, partly due to tensions in West Asia, have contributed to the biggest annual jump in producer inflation in over three years.
Investor focus
Market participants await consumer sentiment survey for inflation expectations
The potential for reduced tensions could ease fears of disruptions to energy shipments through the Strait of Hormuz, a key oil transit route. However, investors remained cautious amid the uncertain geopolitical backdrop. Market participants are now looking forward to the preliminary University of Michigan consumer sentiment survey for further clues on inflation expectations and the Federal Reserve's policy trajectory.