Precious Metals Preview: Gold and silver stay strained as Hormuz closure stokes inflationary concerns

COMEX gold edged lower in early Asia on Thursday as tensions continue to escalate over the Strait of Hormuz shipping route despite a ceasefire extension. This blockage is likely to inflate energy costs and stoke inflationary concerns and thereby higher interest rates which do not bode well for the yellow metal. Meanwhile, firmer dollar is also weighing down on metal prices. Greenback receives support from heightened safe-haven demand amid ongoing Middle East uncertainty and the blockade of the Strait of Hormuz. At the time of writing, gold futures are down 0.7% at $4718.50 an ounce. Silver is also down almost 3% at $75.99 an ounce.

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