Metals rise amid war crisis and expectations on U.S. interest rates

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Andrea Pelucchi

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The trading day opens with strengthening in the main precious metals, supported by the weakening of the dollar and the climate of international geopolitical uncertainty. Gold confirms itself as the primary safe-haven asset in financial markets, standing at around $5,180.70 per ounce (+1.65%), while silver records stronger gains thanks also to the strong industrial component of demand, reaching $88.48 per ounce (+4.6%).


Supporting the yellow metal is mainly the decline in U.S. Treasury yields, which reduces the opportunity cost of holding a non-yielding asset such as gold. Investors are also awaiting the next U.S. inflation data, which could provide decisive indications about the future moves of the Federal Reserve. The market continues to price in possible interest-rate cuts in the second half of 2026, a scenario that is traditionally favorable for precious metals.


On the geopolitical front, tensions in the Middle East continue to fuel demand for defensive assets. Recent frictions between the United States, Israel, and Iran have increased volatility in energy and financial markets, pushing many investors to seek refuge in gold.


Among other metals, silver also benefits from industrial demand linked to the energy transition and the growth of the photovoltaic sector. Movements in platinum and palladium are more moderate, as they are strongly tied to the automotive industry and the production of catalytic converters.


Finally, copper - often considered a leading indicator of the health of the global economy - continues to reflect prospects for industrial growth and infrastructure investment, maintaining a key role in monitoring the evolution of the global economic cycle.


Andrea Pelucchi