Gold Spot Price AUD $6031.48

Silver Spot Price AUD $92.49

Platinum Spot Price AUD $2456.97

The brief period of calm in the Middle East appears to be over, with tensions between Iran, Israel and the United States escalating once again. Missile exchanges, military strikes and renewed threats around the Strait of Hormuz have pushed the region back into the headlines, while hopes of a lasting peace agreement appear increasingly remote. With roughly 20% of global oil supply normally passing through Hormuz, the prospect of the waterway remaining closed continues to weigh heavily on governments, energy markets and supply chains around the world.

What has surprised many investors is that gold and silver have not responded in the way they traditionally might. Earlier this year, rising geopolitical tension pushed precious metals sharply higher as investors sought protection from uncertainty. This time, however, markets appear far more focused on inflation and interest rates than on conflict itself.

With fresh US inflation data due shortly, investors are increasingly concerned that persistent inflation pressures could keep interest rates elevated for longer than previously expected. Higher interest rates generally reduce the appeal of non-yielding assets such as gold and silver, and that theme has been dominating trading activity in recent weeks.

As a result, both metals are beginning to look technically weaker. Gold has slipped below several support levels that traders closely monitor, while silver has also struggled to attract buying momentum despite ongoing geopolitical instability. Although both remain well above the levels seen a year ago, the short-term trend has clearly softened and sentiment among traders has become noticeably more cautious.

The disconnect between global events and precious metal pricing highlights how complex markets can become. While conflict in the Middle East continues to create uncertainty around oil supplies and global trade, investors currently appear more concerned about the possibility of stubborn inflation and tighter monetary policy. Until one of those forces gains the upper hand, gold and silver may continue to drift lower despite the increasingly unstable geopolitical backdrop.

The next major test arrives with the latest US inflation figures. A stronger-than-expected result could reinforce the current bearish sentiment towards precious metals, while a softer reading may provide the catalyst needed for gold and silver to stabilise and regain some upward momentum. For now, bullion investors find themselves in the unusual position of watching geopolitical tensions rise while the traditional safe-haven assets remain under pressure.

Enjoy today’s charts

Gold daily chart, with 50MDA