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Silver, Gold Extend Losses
(MENAFN) Silver prices plunged by more than 6.5% on Friday, dropping to $77.8 per ounce and marking a second straight session of sharp declines as heavy selling activity swept through the precious metals sector.
Gold also recorded notable losses, with spot prices retreating amid increasing US Treasury yields and a firmer dollar, both of which pressured non-yielding assets. Spot gold slipped nearly 1.8% to $4,568.70 per ounce by 0545GMT and remained on course for a weekly decline, while US gold futures likewise trended downward.
The downturn came after fresh US inflation figures released earlier in the week revealed that price pressures had intensified once again. Consumer prices climbed 3.8% year-on-year in April, compared with 3.3% in March, while the energy index surged 17.9% during the same timeframe, according to the US Bureau of Labor Statistics.
Wholesale inflation also accelerated, as the Producer Price Index for final demand advanced 1.4% in April, representing the largest monthly increase since 2022. On an annual basis, producer prices jumped 6%, heightening concerns that businesses could transfer rising expenses to consumers over the months ahead.
Growing inflationary strain has been fueled mainly by the prolonged Iran war and the shutdown of the Strait of Hormuz, events that interrupted global energy supplies and drove oil and transportation expenses significantly higher.
Investors have now entirely ruled out the prospect of a Federal Reserve interest-rate reduction this year, while some market participants are increasingly preparing for the possibility of a rate increase by December as policymakers grapple with renewed inflationary threats.
Gold also recorded notable losses, with spot prices retreating amid increasing US Treasury yields and a firmer dollar, both of which pressured non-yielding assets. Spot gold slipped nearly 1.8% to $4,568.70 per ounce by 0545GMT and remained on course for a weekly decline, while US gold futures likewise trended downward.
The downturn came after fresh US inflation figures released earlier in the week revealed that price pressures had intensified once again. Consumer prices climbed 3.8% year-on-year in April, compared with 3.3% in March, while the energy index surged 17.9% during the same timeframe, according to the US Bureau of Labor Statistics.
Wholesale inflation also accelerated, as the Producer Price Index for final demand advanced 1.4% in April, representing the largest monthly increase since 2022. On an annual basis, producer prices jumped 6%, heightening concerns that businesses could transfer rising expenses to consumers over the months ahead.
Growing inflationary strain has been fueled mainly by the prolonged Iran war and the shutdown of the Strait of Hormuz, events that interrupted global energy supplies and drove oil and transportation expenses significantly higher.
Investors have now entirely ruled out the prospect of a Federal Reserve interest-rate reduction this year, while some market participants are increasingly preparing for the possibility of a rate increase by December as policymakers grapple with renewed inflationary threats.
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