Precious Metals Recover After Lower Open
Gold and silver futures opened lower on Friday but quickly recovered in early trading as investors approached the session with caution. The move came ahead of the monthly jobs report and amid renewed geopolitical uncertainty linked to fresh exchanges between Iranian forces and US naval ships.
June gold futures opened at 4,682.50 dollars per troy ounce, down 0.6% from Thursday’s closing price of 4,710.90 dollars. By 6:45 a.m. ET, gold had climbed to 4,732.60 dollars, and by 10:45 a.m. ET it was holding near 4,731.80 dollars.
Silver Shows Stronger Momentum
Silver also rebounded after a weaker open. July silver futures began Friday at 78.80 dollars per ounce, down 1.7% from Thursday’s closing price of 80.18 dollars.
By 6:45 a.m. ET, silver had risen to 81.12 dollars, and by 10:45 a.m. ET it was trading around 81.30 dollars. The move extended silver’s recent outperformance, with the metal up 7.29% over the last five days, compared with a 2.22% gain for gold.
Jobs Data Shapes Investor Positioning
The rebound in precious metals came as investors waited for labor market data that could influence expectations for the Federal Reserve. Jobless claims and the broader monthly jobs report are important because they help shape views on growth, inflation and future interest rate policy.
Gold and silver are sensitive to rate expectations. Higher interest rates can reduce the appeal of non-yielding assets, while signs of economic weakness or policy easing can support demand for precious metals as defensive stores of value.
Iran Tensions Keep Haven Demand Alive
Geopolitical risk also remains a key driver. Investors were monitoring an exchange of attacks involving Iranian missiles, drones and small boats against US naval ships. Despite the latest escalation, the president said the ceasefire remains in effect.
An Iranian response to the White House’s latest peace proposal is expected over the weekend. Until there is more clarity, markets are likely to keep some risk premium in safe haven assets, even as oil prices have eased from recent highs.
Oil Pullback Eases Some Inflation Pressure
Brent crude was trading just above 100 dollars a barrel and has fallen about 7% over the past five days. The decline in oil prices offers some relief for inflation expectations, though prices remain elevated compared with levels seen before the conflict.
For precious metals, the oil move creates a mixed signal. Lower energy prices may reduce inflation hedge demand, but continued geopolitical uncertainty and uncertainty around central bank policy can still support gold and silver buying.
Longer-Term Performance Remains Strong
Gold’s latest opening price was up 1% from one week earlier, down 1.6% from one month ago and up 38.1% from one year ago. Although that annual gain is below the 95.6% one-year increase recorded on January 29, it still reflects a powerful long-term rally.
Silver’s performance has been even stronger. Its opening price was up 5.9% from one week earlier, 3.5% from one month ago and 144.1% from one year ago. For investors, the session highlights the continuing role of precious metals as a hedge against geopolitical risk, inflation uncertainty and shifting expectations for US monetary policy.
