Gold and Silver Rebound After Week-Long Slide, but Market Volatility Remains

 Gold and silver prices moved higher on Friday, potentially ending their longest losing streak in months, as investors reacted to easing geopolitical tensions and shifting expectations surrounding global interest rates.

Silver climbed nearly 5% to around $67 per ounce during morning trading, after reaching an intraday high above $68. Meanwhile, gold gained close to 3%, rising to $4,223.70 per ounce after touching a session high of $4,267.80.

The rebound comes after both precious metals recorded five consecutive sessions of losses, their longest downward streak since late March. Despite Friday's recovery, gold remains on track for a weekly decline of approximately 7%, marking a second consecutive week of losses.

Analysts at Saxo Bank attributed the recovery to signs of easing tensions in the Middle East after U.S. President Donald Trump reportedly canceled planned military strikes on Iran and suggested that a peace agreement could be within reach.

The decline in oil prices also supported precious metals. Throughout the Iran conflict, gold and silver have often moved in the opposite direction of crude oil, making lower energy prices a favorable development for bullion markets.

However, analysts at Sucden Financial warned that gold and silver remain vulnerable to further swings. A stronger U.S. dollar continues to weigh on precious metals, while investors remain highly sensitive to developments from both the Middle East and central banks.

A major focus for markets is the upcoming meeting of the Federal Reserve. Investors are closely monitoring whether policymakers will signal future interest-rate increases as inflation concerns persist.

Commodity analyst Peter Fertig noted that while geopolitical headlines continue to influence short-term price movements, inflation and monetary policy remain the dominant drivers of precious metals. Higher interest rates typically reduce the appeal of non-yielding assets such as gold and silver, often leading to price declines.

Despite recent weakness, both metals remain significantly higher than a year ago. Gold and silver reached record highs earlier this year, supported by lower interest rates, global trade tensions, geopolitical uncertainty, and growing industrial demand from technology-related sectors.

Looking ahead, traders are expected to remain focused on Federal Reserve decisions, inflation data, movements in the U.S. dollar, and any new developments involving Iran. These factors are likely to determine whether Friday's rebound marks the beginning of a sustained recovery or merely a temporary pause in the recent decline.