Today's closing session in the metals markets was marked by a significant rebound in gold and silver, primarily driven by the news of the Strait of Hormuz reopening for shipping, which has eased geopolitical tensions in the Middle East. Gold XAU climbed to $4,878.80 USD/oz, registering a gain of 1.47%. Silver XAG experienced an even more pronounced move, closing at $81.45 USD/oz with an increase of 3.48%.
The declaration that the Strait of Hormuz is open to shipping, according to financial press reports, was the main catalyst for these movements. This development, interpreted as a step towards de-escalation of the conflict in the Middle East, has reduced risk perception in the markets, benefiting precious metals as a safe-haven asset. Copper HG also showed a slight appreciation, closing at $6.09 USD/oz (+0.17%), reflecting more stable behavior in the industrial sector.
On the other hand, platinum XPT and palladium XPD had mixed performance. Platinum finished the day at $2128.90 USD/oz with a rise of 0.79%, while palladium barely changed, closing at $1582.00 USD/oz (+0.04%). The divergence in the behavior of these metals is attributed to specific supply and demand factors within their respective industries, although the general improvement in risk sentiment has limited declines.
During the afternoon, statements from Federal Reserve member Christopher Waller, regarding how the war in the Middle East could increase inflation and complicate rate cuts, and his subsequent comment that a swift end to the war could keep rate cut hopes alive, added nuances to the market narrative. However, the impact of these statements seemed to be overshadowed by the news from the Strait of Hormuz.
**Metals Close**
* **Gold (XAU):** $4878.80 USD/oz (+1.47%). Driven by the reopening of the Strait of Hormuz, which reduces geopolitical risk premiums. The price surpassed intraday resistance and is approaching recent highs.
* **Silver (XAG):** $81.45 USD/oz (+3.48%). Benefited by general bullish sentiment and US dollar weakness. Silver showed strong strategic accumulation during the session.
* **Platinum (XPT):** $2128.90 USD/oz (+0.79%). Positive close, although with less momentum than gold and silver. It remains above key technical support levels.
* **Palladium (XPD):** $1582.00 USD/oz (+0.04%). Sideways movement, indicating caution in this metal's market, sensitive to automotive demand.
* **Copper (HG):** $6.09 USD/oz (+0.17%). Slight gain, reflecting stable industrial demand and general market sentiment improvement.
**Session Driver**
The declared reopening of the Strait of Hormuz was the main driver of the day, alleviating concerns about oil supply disruptions and reducing the geopolitical risk premium in precious metals markets. The news generated a flow of capital towards assets considered safer and with appreciation potential.
**Tomorrow**
Investors should pay close attention to the release of key US employment data, including non-farm payrolls and the unemployment rate. This data will have a significant impact on the Federal Reserve's monetary policy expectations and, consequently, on the direction of precious metals. The evolution of geopolitical tensions in the Middle East will also be closely monitored, although today's news has provided a temporary respite.
Sources
Oil slumps as US and Iran declare Strait of Hormuz open to shippingGold price nears month high as Iran reopens Strait of HormuzFed Governor Waller says Iran war and labor market risks are keeping central bank on holdFed’s Waller says swift war end could keep rate cut hopes alive