Gold Closes at $4710 (+0.56%), Fed in Focus; Silver Falls

Today's session in the precious metals markets was marked by a shift towards caution in the final hours, despite a positive close for gold. Statements from Federal Reserve officials, coupled with continued geopolitical tension in the Middle East, were the main drivers of intraday movements. Gold, acting as a safe-haven asset, managed to regain ground and close the day in positive territory, while silver and other industrial metals experienced declines.

Session Closing Levels

At the close of Western markets, the main precious metals registered the following movements:

* **Gold (XAU):** $4710.90 USD/oz (+0.56%)

* **Silver (XAG):** $72.42 USD/oz (-0.59%)

* **Platinum (XPT):** $1950.80 USD/oz (-1.35%)

* **Palladium (XPD):** $1464.50 USD/oz (-1.79%)

* **Copper (HG):** $5.55 USD/oz (-0.82%)

Drivers of Intraday Movements

The day was dominated by the evolution of expectations regarding the Federal Reserve's monetary policy and the persistence of conflict in the Persian Gulf region. Statements from Raphael Bostic, President of the Atlanta Fed, suggested that the institution might be at a crossroads, facing a potential "stagflationary shock" derived from the war in Iran. While the Fed has indicated that growth and inflation are becoming increasingly less sensitive to oil shocks, the possibility of a prolonged closure of the Strait of Hormuz pushing oil to $167 and inflation above 4% generates uncertainty.

This Fed rhetoric has boosted demand for gold as a hedge against inflation and economic instability. Conversely, silver and industrial metals like copper and platinum have ceded ground, influenced by concerns that inflationary pressures and geopolitical tensions could diminish industrial demand in the medium term. The news that operations in the Strait of Hormuz affect the global helium supply chain and that AWS is working to maintain its services in the region following drone attacks underscores the fragility of supply chains in the face of conflict.

Outlook for Tomorrow

Investors should remain vigilant for any new escalation or de-escalation in the Iran conflict, as well as for the release of key macroeconomic data in the United States and Europe. The evolution of U.S. Treasury yields and dollar strength will also be important indicators to monitor. The Federal Reserve will maintain its tone, and any signals regarding future interest rate decisions will have a direct impact on precious metals, especially gold and silver.

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