Silver and gold prices drop: US dollar rises; oil surge shakes markets

Precious metals and industrial metals moved lower on Friday. Silver fell to $83.40 per ounce, a drop of about 2%. This was the third straight day of losses for the metal. Gold also declined by about $25 to around $5,100.60 per ounce. Other metals also followed. Platinum dropped sharply by about 4.47% to $2,068.60 per ounce. Copper slipped to about $5.80 per pound.

The US Dollar Index rose to about 100.19 during the latest trading session. When the dollar becomes stronger, commodities priced in dollars become more expensive for buyers in other countries. This often reduces demand for metals such as gold and silver. At the same time, yields on US Treasury bonds have reached a five-week high. Higher yields make bonds more attractive for investors. Expectations for Federal Reserve policy also changed this week. Many investors now believe the Federal Reserve may delay interest rate cuts as inflation risks remain high.

Oil prices rose sharply due to tensions in the Middle East. Brent crude traded close to $96 per barrel, while West Texas Intermediate crude moved near $94 per barrel. Much of the concern is linked to the Strait of Hormuz, a key route for global oil shipments. A large share of the world’s oil supply passes through this area. Higher oil prices can increase inflation because they raise transport and production costs across the economy. If inflation stays high, central banks such as the Federal Reserve may keep interest rates higher for a longer time.

Copper prices fell to about $5.80 per pound. Copper is widely used in construction, infrastructure, and electronics. Because of this, it is often seen as a signal of global economic activity. Platinum recorded one of the biggest losses of the day, falling to $2,068.60 per ounce. The metal is widely used in catalytic converters in vehicles. If investors expect slower economic growth or lower car production, platinum demand may fall.