Precious Metals Preview: Gold slumps under $4100 mark as renewed tensions between the US and Iran raise energy-driven inflation fears

The precious metal extends its downside as US President Donald Trump said the ceasefire with Iran has ended, stoking concerns that a renewal of war could again drive inflation and push up interest rates. COMEX gold and silver futures plunged sharply yesterday and extended decline on Thursday morning as US President reportedly threatened to bomb Iran for a second day and reimpose the US naval blockade in retaliation for attacks on tankers transiting the Strait of Hormuz. This could reinforce expectations that the US Federal Reserve (Fed) may keep interest rates higher for longer to combat stubborn inflation. The yellow metal slumped under $4100 mark while silver is holding at around $58.26 per ounce mark.

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