From mint · A Ksheerasagar · · 1m 10s
Silver and gold hit 7- and 2-month lows
Silver crashes to 7-month low as Middle East tensions boost oil prices and Fed rate hike expectations.
In brief
Silver crashes to 7-month low as Middle East tensions boost oil prices and Fed rate hike expectations. Silver fell ₹8,593/kg to a seven-month low on MCX while gold dropped to a two-month low amid Middle East tensions and rising oil prices. Originally reported by mint.
Silver hits 7-month low
Silver fell ₹8,593 per kilogram to a seven-month low of ₹2,00,575 on MCX.
“Silver fell ₹ 8,593 per kilogram to ₹ 2,00,575 on MCX”
Gold drops to 2-month low
Gold declined ₹2,300 per 10 grams to ₹1,43,600, its lowest level in two months.
“Gold prices also fell, with MCX gold declining ₹ 2,300 per 10 grams to ₹ 1,43,600”
Middle East tensions rise
Deadly attacks in Saudi Arabia heightened concerns over energy flows from the region.
“The crash in precious metals coincided with a rise in crude oil prices, as deadly attacks in Saudi Arabia heightened concerns over the impact on energy flows from the region”
Oil prices surge
Brent crude rose 3.3% to $112.38 a barrel after touching its highest level in five months.
“Brent crude rose 3.3% to $112.38 a barrel after touching its highest level in five months”
Fed rate hike expectations
Traders price in 86% likelihood of a December Fed rate hike amid elevated inflation and energy costs.
“Traders are pricing in an 86% likelihood of a rate increase in December”
US President Trump's comments
Trump played down oil price concerns, saying the conflict would end after midterm elections.
“Last month, US President Donald Trump played down concerns about oil prices and the war, saying the conflict would end after the midterm elections”
What drives the selloff
Rising Middle East tensions lifted oil prices and increased expectations of further US Federal Reserve rate hikes.
“Rising Middle East tensions lifted oil prices and increased expectations of further US Federal Reserve rate hikes”
The one thing
Silver fell ₹8,593/kg to a seven-month low on MCX while gold dropped to a two-month low amid Middle East tensions and rising oil prices.
