Galaxy Futures: Tensions between the US and Iran lead to wide fluctuations in gold and silver prices

Recently, there are again signs that the conflict in the Middle East may escalate further. Equipment such as Iranian steel plants and nuclear power stations have been targeted, and at the same time it has retaliated by sabotaging U.S.-Israeli-related industrial and energy facilities. Moreover, as the United States has increased its deployment of ground troops to the Middle East, tensions in the war have risen; energy prices have continued to climb; the U.S. dollar has remained strong; and there is still downward pressure above gold and silver. Looking ahead, Powell’s remarks have eased market concerns about additional rate hikes in the short term, but due to the impact of energy prices, the Federal Reserve is likely to keep interest rates unchanged for at least a longer period. The upside room for a rebound in gold and silver may be limited—before or temporarily—by the market’s stalling inflation issue. In addition, it is important to pay close attention to the subsequent movements of U.S. ground forces, and to stay alert to changes in the geopolitical situation and the corresponding tail risks (the intensity of the war continues to escalate).