Silver falls 1.57% as oil spikes complicate rate outlook
COMEX silver dropped $1.017 to $63.91 an ounce. Gold followed lower by 0.86%. Crude oil gains are pressuring precious metals.
Silver prices fell 1.57% on COMEX to $63.91 an ounce. The metal lost $1.017 from the previous close. Gold declined 0.86% to $4,369.40 an ounce. These moves occurred on Friday, September 11. The drop followed a sharp rise in crude oil costs. This development complicates the US Federal Reserve’s interest rate path.
Brent crude moved above $108 per barrel. US West Texas Intermediate crossed $103 per barrel. Both benchmarks gained more than 6% in the prior session. Higher energy costs add to inflationary pressures. This reduces the appeal of non-yielding assets like gold. Bond yields rose in response to these inflation concerns.
Oil costs drive inflation concerns
Analysts link the oil spike to pressure on bullion. Vedika Narvekar of Anand Rathi noted the impact. She expects gold to trade between $4,340 and $4,450. Silver faces similar headwinds from rising yields. Higher rates make holding physical metal less attractive. The market awaits clarity on the next Fed move.
Supportive factors include a weaker US dollar. Strong inflows into gold ETFs also help demand. Global gold ETFs attracted $18 billion in August. This is the second-largest monthly inflow on record. Total holdings reached a record 4,189 tonnes. Prithviraj Kothari of RiddiSiddhi Bullions cited this support.
Dollar weakness supports bullion demand
Kothari expects gold to stay in the $4,300 to $4,500 range. He sees upside for silver if it holds above $67. Fiscal concerns in the US provide a floor for prices. Geopolitical risks continue to drive investor interest. A hot inflation reading could reverse this trend. Higher yields would further pressure bullion values.
Silver volatility exceeds gold movements
Silver showed sharper moves than gold on Friday. It fell 1.57% against gold’s 0.86% drop. Vikram Subburaj of Giottus.com noted high volatility. Short covering contributed to recent rallies in MCX sessions. Gold tested the 1.54 lakh rupee level per 10 grams. Silver traded around 2.44 lakh rupees per kilogram.
The rupee traded near 95.10 to 95.25 per dollar. A weaker currency supports domestic metal prices. Imported bullion becomes costlier in local terms. Gaurav Garg of Lemonn highlighted this dynamic. He cited crude prices and the rupee as key risks. Headlines and US data will drive near-term moves.
