Gold & Silver Reacting To A High Oil Price

GOLD

Oil prices climbed by around 30% this morning, fears of worsening inflation, which may necessitate keeping interest rates elevated. High interest rates are considered bearish for precious metals because they make them less attractive investments in comparison to other assets.

At 11am PT today, Gold is trading at $5,060 per ounce, and $5,095 per ounce from last week.

SILVER

Silver closed at $83.26 per ounce last Friday, down $10.56 for the week. Over the weekend, Silver briefly broke below $80 per ounce due to high oil prices. Silver rallied back above $82 on solid buying in China and India. I expect to see all precious metal prices to be highly volatile for a while, as this war develops and the oil price rallies.

At 11am PT today, Silver is trading at $82 per ounce, and $84 per ounce last week.