Gold prices held on to modest gains in European trading on Friday, but were still nursing deep weekly losses, as the U.S.-Israel war on Iran raised inflation expectations and dented bets on interest rate cuts. 

The yellow metal had tumbled on Thursday after several major central banks flagged caution over the inflationary effects of the Iran war. This in turn fueled expectations for no interest rate cuts in the near-term – a scenario that bodes poorly for precious metals. 

Spot gold rose 0.1% to $4,657.00 an ounce by 06:45 ET (10:45 GMT), while gold futures advanced 1.1% to $4,658.41/oz.

Bullion took some relief from a drop in the dollar, which was headed for its first weekly loss in three. The greenback was outpaced by other major developed world currencies after several central banks flagged plans for interest rate hikes in the face of rising energy prices. 

Gold heads for deep weekly losses

Spot gold was trading down roughly 8% this week – its worst weekly drop since early-2020. Despite being widely regarded as a safe haven asset, gold has largely underperformed since the onset of the Iran war in late-February. 

Safe haven flows into gold were vastly overshadowed by a spike in the dollar and U.S. Treasury yields, as markets fretted over the inflationary effects of the conflict.

Oil prices shot up to near four-year highs this week, fueled in large part by strikes on Middle Eastern energy infrastructure. The spike in oil saw a swathe of major global central banks flag caution over potential energy-driven inflation.

The Reserve Bank of Australia hiked interest rates, while the Federal Reserve, European Central Bank, Swiss National Bank and Bank of Japan all left rates steady and warned of few changes in the coming months.

“Growing concerns over the global economic fallout from the conflict are weighing on risk appetite. The spike in oil prices has added to inflation concerns, reducing the likelihood of a near-term U.S. rate cut and creating headwinds for both industrial and precious metals,” analysts at ING said in a note.

Oil prices jumped on Thursday, with benchmark Brent rising to its highest in more than a week to more than $115 a barrel, after Iran attacked energy facilities across the Middle East following Israel’s strike on its South Pars gas field, a major escalation in the war. 

Brent futures were up $6.08, or 5.7%, at $113.46 a barrel by 0814 GMT, after climbing almost $8 to the highest since March 9 to a session high of $115.10.

U.S. West Texas Intermediate crude rose 57 cents, or 0.6%, to $96.89 a barrel, after earlier gaining almost $4 to trade at $100.02.

WTI has been trading at its widest discount to Brent in 11 years due to releases from U.S. strategic reserves and higher freight costs, while renewed attacks on Middle Eastern energy facilities boosted support for Brent. 

"Escalation in the Middle East, precise attacks on oil infrastructure, and the death of Iranian leadership all point to a prolonged disruption in oil supplies," ⁠Phillip Nova analyst Priyanka Sachdeva said in a note. 

"Adding fuel to the fire, the Federal Reserve served ’steady rates’ with a hawkish narrative, pointing to the economic concerns that follow a war."

U.S. FED HOLDS STEADY

The U.S. central bank held interest rates steady on Wednesday, projecting higher inflation as policymakers take stock of the impact of the U.S.-Israel war with Iran.

On Wednesday, QatarEnergy said Iranian missile attacks on Ras Laffan, the site of Qatar’s core LNG processing operations, caused "extensive damage" to its energy hub. 

Saudi Arabia said it intercepted and destroyed four ballistic missiles launched on Wednesday toward Riyadh and an attempted drone attack on a gas facility.

Saudi Aramco’s SAMREF refinery in the Red Sea port of Yanbu was also targeted in an aerial attack on Thursday.

Kuwait Petroleum Corporation said an operational unit at its Mina al-Ahmadi refinery was hit by a drone, igniting a limited fire. 

Iran issued evacuation warnings before its attacks for several oil facilities across Saudi Arabia, the UAE and Qatar, as it prepared to retaliate for strikes on its own energy infrastructure in South Pars and Asaluyeh. 

South Pars is the Iranian sector of the world’s largest natural gas deposit, which Iran shares with U.S. ally Qatar on the other side of the Gulf.

Israel carried out the South Pars gas field attack, but the United States and Qatar were not involved, President Donald Trump said late on Wednesday.

He added that Israel would not further attack Iranian facilities in South Pars unless Iran attacked Qatar, and warned that the United States would respond if Iran acted against Doha.

Earlier, Reuters reported that Trump’s administration is considering deploying thousands of U.S. troops to reinforce its operation in the Middle East, in preparation for the next steps of its campaign against Iran.

Gold prices fell below key levels in Asian trade on Wednesday as markets grew more uncertain over interest rates and inflation before the conclusion of a closely watched Federal Reserve meeting later in the day.

While gold had initially risen back above $5,000 an ounce level, it reversed course as continued hostilities in the U.S.-Israel war on Iran left markets largely on edge over the conflict’s inflationary effects. 

Spot gold fell 0.4% to $4,987.09 by 01:18 ET (05:18 GMT), while gold futures fell 0.4% to $4,990.44/oz. 

Other precious metals also retreated, with spot silver down 0.3% at $79.0345/oz, while spot platinum fell 0.6% to $2,116.40/oz. 

Gold sees limited haven demand as Iran war rages on

A worsening conflict in the Middle East offered limited support to gold, which struggled to remain above $5,000/oz this week even as the U.S. and Israel continued to attack Iran, drawing a wave of retaliatory attacks from the Islamic republic. 

The war showed few signs of abating after an Israeli air strike killed Iran security chief Ali Larijani earlier this week. Oil prices remained perched above $100 a barrel, amid continued concerns over supply disruptions. 

Markets largely feared the inflationary impact of the conflict, especially as oil prices shot up to near four-year highs after supply through a key shipping lane– the Strait of Hormuz– was disrupted. 

Energy-fueled inflation could elicit a more hawkish stance from major central banks, with the Reserve Bank of Australia raising interest rates on Tuesday and warning of inflationary pressures from the conflict. 

Fed, central banks awaited for more rate cues

The Fed, along with a host of other major central banks, are now set to meet in the coming days. The Fed will decide on rates later on Wednesday, followed by the Bank of Japan, the European Central Bank, the Swiss National Bank, and the Bank of England later this week. 

The Fed is widely expected to leave rates unchanged, with focus squarely on whether the central bank expects an inflationary bump from the Iran conflict, and whether it could affect the outlook for interest rates. 

Markets were seen largely pricing out expectations for any interest rate cuts by the Fed until at least September, CME Fedwatch showed.

The prospect of higher for longer rates bodes poorly for gold, given that it increases the opportunity cost of investing in non-yielding assets. 

While gold still retained some of its annual gains, it was nursing a sharp fall from a near $5,600/oz record high hit in late-January. 

Oil prices rose sharply in Asian trade on Tuesday, with Brent remaining above $100 a barrel as concerns over supply disruptions stemming from the U.S.-Israel war on Iran remained largely in play. 

Crude prices recovered after a 5% drop in the prior session, as reports showed some vessels having successfully passed through the Strait of Hormuz. But the shipping lane still remained largely blocked, and U.S. calls for allied help in policing the strait were also mostly rebuffed. 

Brent oil futures rose 2.8% to $103.01/barrel by 00:58 ET (04:58 GMT), while West Texas Intermediate crude futures rose 2.6% to $95.54/barrel. 

Iran conflict rages on, Hormuz crossings limited

Hostilities between the U.S., Israel, and Iran showed few signs of easing on Tuesday as the conflict entered its third consecutive week.

Iran threatened to hit U.S.-affiliated industries in the Middle East, after the U.S. and Israel last week attacked Kharg Island, a key export terminal for the Islamic republic.

Iran and Israel traded air strikes in the early hours of Tuesday, with drones and rockets also being fired at a U.S. embassy in Baghdad. 

U.S. President Donald Trump over the weekend called on at least seven countries, including China, to help reopen trade through the Strait of Hormuz. But his calls were largely rebuffed, with several U.S. allies indicating they had no immediate plans to send ships to the Middle East. 

The closure of the strait has been a major focus point in the war, given that it accounts for about 20% of the world’s oil supply. Iran had effectively blocked the strait earlier this month. 

But reports on Monday showed some India and Pakistan-flagged gas tankers successfully passed through the strait. Iran had earlier signaled that it will allow ships from some countries to pass through the strait, and will attack any vessels tied to the U.S. and its allies. 

Oil prices have risen sharply since the onset of the Iran war, aided by the prospect of prolonged disruptions in markets. Several major Asian economies are highly dependent on oil imports through Hormuz. 

The inflationary effects of the Iran war have been a major pain point for markets, amid concerns that energy-driven inflation will elicit more hawkish measures from global central banks. 

A swathe of major central banks, including the Federal Reserve, European Central Bank, and the Bank of Japan are set to meet this week. 

U.S. Federal Reserve officials, their policy outlook roiled by a war that has stranded a fifth of global oil supply, meet this week to debate whether the Iran conflict is more likely to disrupt economic growth, threaten more persistent inflation, or create a confounding mix of economic slowing and rising prices.

Mindful of how pandemic-era supply shocks put the Fed on a path to miss its 2% inflation target for five years running, policymakers are more likely to strike a cautious if not outright hawkish tone this week. Inflation is mired about a percentage point above target and is poised to move higher, particularly if oil prices that jumped almost 50% in two weeks remain elevated.

"A question that was almost unthinkable two weeks ago is now being more heavily debated: Could the Fed raise rates in 2026?," Matthew Luzzetti, chief U.S. economist for Deutsche Bank Securities, wrote last week. It’s a possibility some Fed policymakers were ready to put on the table even at their last meeting, though Luzzetti concluded rate increases still were unlikely, absent a clear jump in inflation expectations.

Officials will also have to weigh whether the developing economic shock, expected to show up not just in higher prices but also in tighter financial conditions, lower asset prices and more uncertainty, will be the factor that breaks the economy’s resilience.

"Just when it seemed the worst of the policy chaos was over, there is the Iran war to deal with," Dario Perkins, chief economist for global macro at TS Lombard, wrote last week. He recounted the repeated stress the economy has navigated from the pandemic to the inflation and rapid Fed rate hikes that followed and then the tariff, immigration and other policy shifts since President Donald Trump’s return to office. "Our baseline assumption is that the conflict will be short-lived and ’this too shall pass.’ But..could the energy crisis be one shock too many?"

Potential faultlines include February’s loss of 92,000 jobs, middle- and lower-income consumers already stretched by high prices and concerns about credit tightening, particularly if asset prices keep declining.

As of Sunday, the average U.S. retail gasoline price had climbed nearly 25% to the highest since October 2023 in the two weeks since the U.S. and Israel launched attacks on Iran, according to AAA, prompting U.S. officials to predict hostilities would end sooner than later.

"I think that this conflict will certainly come to the end in the next few weeks - could be sooner than that. But the conflict will come to the end in the next few weeks, and we’ll see a rebound in supplies and a pushing down in prices after that," U.S. Energy Secretary Chris Wright told ABC’s "This Week" program on Sunday.    

PROJECTING THROUGH FOG OF WAR 

The Fed is expected to hold interest rates steady at its policy meeting on Tuesday and Wednesday. Data since the last meeting showed little change in the underlying outlook, and the Fed is transitioning to a new leader, Kevin Warsh, nominated by Trump and expected to eventually win Senate confirmation to take over from current Chair Jerome Powell after mid-May. 

The most recent data, however, seems almost ancient two weeks after the start of intense U.S. and Israeli airstrikes and Iranian counterattacks that have all but closed the strategic Strait of Hormuz. At this point Trump has set out no clear set of objectives or timeline for ending the war.

Fed officials, however, will still submit new economic projections, making their best guess about whether what’s about to play out will require a firm stand against inflation with continued tight monetary policy or rate cuts to offset an economic slowdown. 

In the first Fed meeting following Russia’s invasion of Ukraine in 2022, Powell walked through the list of issues to consider.

The impact is "highly uncertain," Powell said at the time. "In addition to the direct effects from higher global oil and commodity prices, the invasion and related events may restrain economic activity abroad and further disrupt supply chains—which would create spillovers to the U.S. economy through trade and other channels. The volatility in financial markets, particularly if sustained, could also act to tighten credit conditions and affect the real economy."

’OUTLOOK HAS TURNED MURKIER’

The situation now is even more dynamic, with the U.S. a combatant and a large share of global oil production and other products unable to move. 

Some issues being raised are imponderably broad if consequential, such as whether the rise in Treasury yields shows a loss of U.S. privilege in global markets, an expectation of higher inflation or something else. Analysts are not so much making forecasts as discussing different scenarios, with the "base case" usually involving a short-lived conflict and eventually falling oil prices, and more damaging outcomes involving an extended standoff between the U.S. and Iran.

Fed officials were surprised last year at how well the economy absorbed higher tariffs, labor market disruptions and an unpredictable environment under Trump. Through all of that U.S. output kept growing even as job creation slowed and inflation remained lodged above target.

Given current uncertainty, the easiest approach now may be to stay close to December’s outlook, which showed a median forecast of just one rate cut this year.

But the spread among individual forecasts may itself tell a tale: Issued after the Fed cut rates by a quarter percentage point at the December meeting, six of 19 officials indicated rates should have stayed higher. The hawkishness turned up another notch in January when minutes of that meeting showed several policymakers were ready to open the door to rate hikes this year, "reflecting the possibility that upward adjustments to the target range for the federal funds rate could be appropriate if inflation remains at above-target levels."

Inflation concerns have only been stoked higher since, while worries about growth and the economy’s cracking point may also intensify - the worst of both worlds for central bankers to try to predict or craft a message.

"The economic outlook has turned murkier as the conflict drags on and oil prices remain high and volatile," Subadra Rajappa, head of research at Societe Generale, wrote last week. "While our base case continues to assume a timely resolution and no sustained economic fallout from this conflict...higher inflation and deteriorating labor market conditions make it difficult for the Fed to balance its dual mandate." 

U.S. President Donald Trump told G7 leaders during a virtual meeting this week that Iran is “about to surrender,” according to a report by Axios citing three officials from G7 countries briefed on the call.

During the discussion on Wednesday morning, Trump reportedly told allies he had “got rid of a cancer that was threatening us all,” while highlighting the results of the U.S. military operation known as “Epic Fury.”

According to Axios, Trump also said the situation inside Iran had become so unstable that it was unclear who could formally declare a surrender.

“Nobody knows who is the leader, so there is no one that can announce surrender,” Trump said during the call, the report added.

The comments come as the war in the Middle East approaches its second week, with both sides continuing to exchange drone and missile strikes across the region.

Trump struck an aggressive tone again on Friday, referring to Iran’s leadership as “deranged scumbags” and saying it was his “great honor” to kill them.

Meanwhile, domestic pressure on the administration increased following the loss of a U.S. military aircraft in the region.

U.S. Central Command said a KC-135 refueling aircraft went down in western Iraq at around 2 p.m. Eastern Time on March 12. Four of the six crew members on board have been confirmed dead, while rescue efforts are ongoing.

“The circumstances of the incident are under investigation,” Central Command said in a statement posted on social media, adding that the loss of the aircraft was not caused by hostile fire or friendly fire.

While Iran may be losing in a conventional military sense — something President Donald Trump continues to emphasize — Tehran’s strategy of disrupting the global economy by threatening the Strait of Hormuz and pushing oil prices higher is proving highly effective. Analysts warn that there is no clear military solution to reopening the Strait of Hormuz.

"This is the dilemma facing stocks – while Trump might be looking for an offramp, he is not fully in control of the conflict," Vital Knowledge analyst Adam Crisafulli said in a morning note on Friday.

"The silver lining on Iran is that both sides are holding back, providing room for compromise (or on a darker note, runway for escalation) – the US/Israel have not targeted Iran’s oil infrastructure in a meaningful way (and Iran is still exporting oil from Hormuz) while Iran’s proxy, the Houthis in Yemen, have stayed on the sidelines."

Gold prices fell in Asian trade on Thursday, sinking back into a trading range seen for more than a week as few signs of de-escalation in the U.S.-Israel war with Iran spurred flows into oil and the dollar. 

While bullion continued to flit between the $5,000-$5,200 an ounce level, it still remained relatively upbeat, as concerns over the war kept some haven demand in play.

Spot gold fell 0.6% to $5,147.05/oz by 01:33 ET (05:33 GMT), while gold futures fell 0.5% to $5,151.86/oz. 

Gold falls as Iran conflict spurs inflation fears, boosts dollar

Weakness in gold came as continued hostilities between the U.S., Israel, and Iran kept market focus squarely on the dollar and oil.

The dollar index rose 0.2% in Asian trade and was close to a two-month high. 

Oil prices jumped sharply on Thursday, briefly rising past $100 a barrel after media reports said two international oil tankers had been struck near Iraq. Other reports showed Oman evacuating a key oil export terminal, while Iran was seen blocking the Strait of Hormuz-- a key supply channel for roughly a fifth of the world’s oil. 

Higher oil prices kept markets largely on edge over a long-term increase in inflation. This in turn fueled concerns over more hawkish central banks in the coming months– a scenario that bodes poorly for gold.

Gold falls as Iran conflict spurs inflation fears, boosts dollar

Weakness in gold came as continued hostilities between the U.S., Israel, and Iran kept market focus squarely on the dollar and oil.

The dollar index rose 0.2% in Asian trade and was close to a two-month high. 

Oil prices jumped sharply on Thursday, briefly rising past $100 a barrel after media reports said two international oil tankers had been struck near Iraq. Other reports showed Oman evacuating a key oil export terminal, while Iran was seen blocking the Strait of Hormuz-- a key supply channel for roughly a fifth of the world’s oil. 

Higher oil prices kept markets largely on edge over a long-term increase in inflation. This in turn fueled concerns over more hawkish central banks in the coming months– a scenario that bodes poorly for gold.

The U.S. dollar strengthened slightly on Wednesday, as investors assessed the potential trajectory of the Iran conflict and awaited a fresh reading of U.S. consumer price inflation.

By 06:06 ET (10:06 GMT), the U.S. dollar index, which tracks the greenback against a basket of currency peers, had risen by 0.2% to 99.02. The euro was mostly unchanged against the dollar, while the British pound inched up by 0.2% to $1.3441.

In a note, analysts at ING flagged that the overall foreign-exchange market remains "strongly driven" by recent wild fluctuations in oil prices due to the war in Iran.

Attention is firmly fixed on the Strait of Hormuz, the narrow waterway south of Iran through which a fifth of the world’s oil flows, much of it destined for countries across Asia. Fears of Iranian attacks have led to a pile-up of vessels on either of the strait, with container companies attempting to guard the safety of crews and struggling to find insurance for sailings.

Brent futures, the global benchmark, now hover around $90 a barrel after having surged to $120 a barrel earlier this week. Gasoline prices in the U.S. have jumped, possibly putting upward pressure on inflation that could lead the Federal Reserve to take a more hawkish monetary policy stance. Higher interest rates may attract more foreign investment, further bolstering the dollar.

Oil prices have been sensitive to a slew of headlines out of the Middle East. A claim by the U.S. Energy Secretary that the military had escorted a tanker through the strait sent Brent oscillating between $81 a barrel and $92 a barrels.

U.S. President Donald Trump has threatened to ramp up American attacks on Iran after reports said that Tehran has placed naval mines across the Strait of Hormuz in recent days. Following a CNN report that Iran had put mines in the bottleneck, although not extensively yet, Trump said on Tuesday that Iran would be hit "at a level never seen before" should the Islamic Republic not remove them.

Meanwhile, the International Energy Agency has proposed the biggest-ever release of strategic oil reserves to help quell the recent ructions in oil prices caused by the Iran war, according to the Wall Street Journal.

Citing officials familiar with the matter, the WSJ said the release would surpass the 182 million barrels of oil that IEA member nations made available after Russia’s invasion of Ukraine in 2022. IEA countries are seen deciding on the proposal on Wednesday, the WSJ said.

Depending on the size of the reserve release, there could be some capping in oil prices in the coming days, the ING analysts said. However, they flagged that the release would be a "temporary measure," adding that "only military de-escalation can drive crude sustainably lower." The IEA’s move might be sending a "hidden signal" to markets that there are few expectations for an immediate ceasefire, they added.

"In our view, these mixed signals could prevent the dollar from dropping much further today unless there are some encouraging headlines on de-escalation," the ING analysts said.

U.S. inflation data ahead

Also on the radar for markets is a reading of U.S. inflation on Wednesday.

Headline U.S. consumer price growth is expected to stay fairly tame on a monthly basis in February, although the outlook for inflation has been darkened by the fighting in Iran.

Economists see the consumer price index -- a key gauge of U.S. inflation -- coming in at 0.3% month-on-month, compared to 0.2% in January. In the twelve months to February, CPI is tipped to equal January’s relatively muted pace of 2.4%.

Still, stripping out volatile items like food and fuel, so-called "core" consumer prices are anticipated to rise by 0.2%, down from 0.3% previously thanks to moderating airfares and winter weather disruptions, analysts at Wolfe Research said. Year-on-year, the measure is expected to match the prior level of 2.5%.

"That said, seasonal strength in core goods, continued firmness in healthcare and other personal service prices, and a rebound in used vehicle prices are likely to offset part of that softness, keeping overall price pressures firm," the Wolfe analysts including Stephanie Roth said in a note.

Oil prices plummeted 7% on Tuesday after soaring to a more than three-year high in the previous session as U.S. President Donald Trump predicted the war in the Middle East could end soon, easing concerns about prolonged disruptions to oil supplies.

Brent futures were down $6.75, or 6.8%, to $92.21 a barrel at 1012 GMT, while U.S. West Texas Intermediate (WTI) crude was down $6.41, or 6.8%, to $88.36 a barrel. Both contracts fell as much as 11% earlier.

Volumes in Brent dropped to about 213,000 contracts, the lowest amount since February 27, just before the start of the conflict. Volumes in WTI fell to 212,000, the lowest since February 20. 

Oil surged to more than $119 barrel on Monday to its highest since mid-2022 as supply cuts by Saudi Arabia and other producers stoked fears of major disruptions to global supplies.

Prices later retreated after Russian President Vladimir Putin held a call with Trump and shared proposals aimed at a quick settlement to the war, according to a Kremlin aide, easing concerns about supply. 

Trump said on Monday in a CBS News interview that he thought the war against Iran was "very complete" and Washington was "very far ahead" of his initial four- to five-week estimated timeframe.

"Clearly Trump’s comments about a short-lived war have calmed markets. While there was an overreaction to the upside yesterday, we think there is an overreaction to the downside today," said Suvro Sarkar, energy sector team lead at DBS Bank, adding that the market was underappreciating risks at these levels for Brent. 

"Murban and Dubai grades are still well above $100 per barrel, so practically nothing much has changed in terms of ground realities," he added, referring to benchmark Middle Eastern oil grades.

In response to Trump, Iran’s Islamic Revolutionary Guards Corps said they would "determine the end of the war" and Tehran would not allow "one litre of oil" to be exported from the region if U.S. and Israeli attacks continued, state media reported on Tuesday.

Meanwhile, Trump is considering easing oil sanctions on Russia and releasing emergency crude stockpiles as part of a package of options aimed at curbing spiking prices, according to multiple sources.

"Discussions around easing sanctions on Russian oil, comments from Donald Trump hinting that the conflict could eventually de-escalate, and the possibility of G7 countries tapping strategic oil reserves all pointed to the same message - that oil barrels will somehow continue to reach the market," Priyanka Sachdeva, a Phillip Nova analyst, said in a note on Tuesday. 

"Once traders sensed that supply routes could still be maintained, the initial ’panic premium’ that had pushed prices above the $100 mark yesterday started to fade, and oil prices quickly pulled back."

Goldman Sachs said because the situation remains fluid, it was not changing its oil price forecast for Brent at $66 per barrel in the fourth quarter 2026 and WTI at $62 per barrel. 

G7 nations said on Monday they were prepared to implement "necessary measures" in response to surging global oil prices but stopped short of committing to the release of emergency reserves.

Gold prices fell on Monday but traded above their session lows as an escalation in the U.S.-Israel war with Iran spurred flows into the dollar and oil. 

Bullion prices remained well above $5,000 an ounce as heightened geopolitical tensions kept investors biased towards safe havens. 

Spot gold fell 1% to $5,117.23/oz by 05:20 ET (09:20 GMT), while gold futures fell 0.7% to $5,124.66/oz. 

Spot gold had fallen as low as $5,015.23/oz earlier in the day. 

Gold remains well above $5,000/oz as Iran conflict drives haven bids

While the yellow metal has benefited from increased haven demand with the onset of the U.S.-Israel war with Iran, its gains have been tempered by concerns that the inflationary effects of the war could elicit a more hawkish stance from major global central banks.

This saw the dollar outpace gold over the past week, while oil prices led commodity gains as the Iran war pointed to increased supply disruptions in crude markets. 

Both the dollar and oil surged on Monday after U.S. and Israeli strikes on Iran’s oil facilities marked a potential escalation in the war. The dollar index jumped 0.6%, while Brent oil rallied as much as 30% and blew past $100 a barrel. 

Oil tempered some of its gains after the Financial Times reported the G7 countries were considering releasing their emergency reserves in the face of supply disruptions. 

Separately, Bloomberg reported that Saudi Arabian producers were offering oil on spot markets, a rare move by the country. 

Iran over the weekend was seen attacking ships in the Strait of Hormuz, essentially blocking a shipping lane that accounts for roughly 20% of the world’s oil supplies. 

Gold had fallen some 2% last week, as the yellow metal continued to flit between $5,000/oz and a near $5,600/oz record high hit in late-January. The metal has since logged wild swings amid heightened speculative activity and growing uncertainty over the path of interest rates. 

Substantially softer than expected U.S. nonfarm payrolls data on Friday did spur some hopes for lower interest rates, although focus is now on the inflationary effects of high oil prices. 

Silver recovers after falling below $80/oz 

Other precious metal prices also broadly fell on Monday, with silver briefly falling below $80/oz.

But spot silver recouped a bulk of its losses and traded down 0.6% at $83.8025/oz. 

Spot platinum slid fell 0.6% to $83.8060/oz, also trading well above intraday lows. 

Like gold, the two precious metals have swung wildly since a major crash in late-January. But their relatively strong haven appeal and hopes of more industrial demand saw silver and platinum still trading higher for the year. 

Among industrial metals, copper futures fell 0.4% to $12,817.0 a ton.