How gold and silver prices are holding steady amid West Asia tensions

Gold and silver prices remained largely steady on Thursday (March 12), with limited directional movement as investors balanced geopolitical risks against broader macroeconomic cues.On the COMEX, gold last traded at $5,149 an ounce, down 0.59% from Wednesday’s close of $5,185.40 an ounce, while silver edged lower to $85.195 per ounce, a 0.40% decline from $86.065 an ounce.

Market activity reflected cautious positioning ahead of key US inflation data.
The bullion market has been influenced by rising crude prices and geopolitical uncertainty in the West Asia. Overnight, US crude futures rose 7.5% to $93.80 a barrel, and Brent crude climbed 7.7% to $99.03 a barrel after reports that multiple tankers had been struck in the Strait of Hormuz and Iraqi waters.
Analysts noted that burning oil and port shutdowns in the region heightened supply concerns, while plans by the International Energy Agency and the US to release oil reserves have only partially tempered these fears.“Gold prices remained under pressure despite elevated geopolitical tensions, as macroeconomic factors continue to outweigh safe-haven demand,” said Kaveri More, Commodity Analyst at Choice Broking.

She added that investors’ preference for liquidity amid equity market volatility and expectations that the Federal Reserve will hold rates steady has limited bullion’s upside.

According to Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, rising crude prices tend to dent gold buying, while declining oil supports bullion demand — a pattern observed over recent sessions.

–With Reuters inputs