Gold & Silver Surge Over 3% Globally, Despite Looming Biggest Monthly Fall in 17 Years

Gold and silver prices have increased across the world. This increase is due to people’s hopes of a decrease in the war in West Asia. However, gold is expected to record its biggest fall in 17 years this month. The main cause is the increase in energy costs, which increases inflation and makes a rate cut by the US this year unlikely.

On Wednesday, gold and silver recorded increases. Both metals rose by more than 3%. Gold on the Comex exchange increased by 1.25%, reaching $4,618 per ounce. This followed a 0.4% increase in the previous session. Silver on Comex rose by 3.7%, reaching $73.2 per ounce during Asian trading sessions.

There are several main reasons why these prices have surged. The rise in crude oil prices has increased concerns about inflation, strengthening market sentiment that the Federal Reserve may keep rates elevated or even increase them instead of cutting them in the future. However, Federal Reserve Chairman Jerome Powell stated that the central bank's policy in the current situation is to wait and watch, and long-term inflation expectations remain within control.