Pioneering Futures: Geopolitical tensions escalate alongside rising expectations of further rate hikes, sending gold and silver lower last night

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Last night, gold briefly fell below 4,100 and silver briefly fell below 60, but today during the session it has already regained its lost ground. A sudden escalation in Iran’s geopolitical situation is one of the direct reasons behind the weakness in gold and silver last night. On Tuesday (July 7) local time, the U.S. military issued a statement launching a new round of airstrikes against Iran and revoking Iran’s oil export license in retaliation for Iran’s earlier attacks on three merchant ships transiting the Strait of Hormuz—among the attacked vessels were a Qatar LNG carrier and a Saudi oil tanker. Changes in market expectations for Federal Reserve policy remain the key macro factor weighing on gold and silver prices; the medium-term outlook stays bearish, while for the short term it is mainly recommended to wait and watch. (Chuangchuang Futures)
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