Gold and silver open lower and rebound after inflation report and threat of sanctions
Gold (GC=F) June futures opened at $4,633.20 per troy ounce on Monday, down 3.2% from Friday’s closing price of $4,787.40. Gold rebounded in early trade, moving to $4,739.40 at 6:55 am ET.
Silver (SI=F) May futures opened at $73.69 an ounce on Monday, down 3.6% from Friday’s closing price of $76.48. The price of silver rose to $74.47 at 6:55 am ET.
The price of gold and silver today is facing many catalysts. The latest CPI report showed that March prices rose by 3.3%, the biggest gain since April 2024. Higher gas prices related to the Iran war were the biggest contributors. Inflation resets the perception of interest. Rather than cutting rates this year, the Fed is more likely to hold or raise borrowing costs. Among other factors, higher interest rates generally reduce gold demand and prices.
Over the weekend, President Trump ordered a blockade of the Strait of Hormuz after peace talks with Iran collapsed. Growing unrest in the Middle East has kept traders on edge and raised the possibility of an economic downturn caused by higher fuel prices. The demand for safe haven gold can increase during a recession. This, along with continued hopes of an end to the war, contributed to gold’s recovery after the exposure.
The opening price of gold futures on Monday was 3.2% lower than Friday’s close. Here’s a look at how the opening gold price has changed over the past week, month, and year:
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One week ago: -0.5%
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One month ago: -9%
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One year ago: +45.6%
Gold’s one-year gain was 95.6% in Jan. 29.
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The opening price of silver futures on Monday was down 3.6% from Friday’s close. Here’s how the opening silver price has changed over the past week, month, and year:
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One week ago: +2.6%
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One month ago: -10.1%
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One year ago: +136.8%
Read more: How to invest in silver: A beginner’s guide
The price of gold can be quoted in many ways because the precious metal is traded in different ways. The two major gold prices that investors should be aware of are current prices and gold futures prices.
Read more: How to invest in gold in 4 steps
The spot price of gold is the current market price per ounce of physical gold as a raw material, sometimes called spot gold. Gold ETFs backed by physical gold assets typically track the spot price of gold.
The spot price is lower than what you would pay to buy gold coins, bullion, or jewelry, as your total price will include a markup called the gold premium that includes refining, marketing, dealer overhead, and profit. The spot price is the same as the wholesale price, and the spot price plus the gold premium is the wholesale price.
Read more: Thinking of buying gold? Here’s what investors should watch.
Gold futures are contracts that authorize the sale of gold at a certain price at a future date. These contracts are exchangeable and more liquid than physical gold. They pay on or before the contract expiration date, either in cash or on delivery. A cash settlement in finance involves paying the profit or loss of a contract in cash. Delivery means that the seller sends physical gold to the buyer at the contract price.
Supply and demand determine gold spot prices and gold futures prices. Factors that influence gold supply and demand include:
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Geopolitical events
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Central bank buying trends
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Inflation
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Interest rates
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Mining production
Read more: Who decides what the value of gold is? How prices are determined.
Whether you’re tracking the price of gold and silver from last month or last year, the price of gold and silver charts below show the change in the price of precious metals.
