Precious Metals Preview: COMEX gold and silver stay pressured as escalating tension in Middle East revive inflation concerns

COMEX gold and silver extended slide on Thursday morning in Asia as elevated oil prices revive inflation concerns threatening prolonged Fed interest rates that continue to weigh down sentiments. The US reportedly launched another wave of strikes against Iran on Wednesday, expanding attacks on military targets along the country's southern coast. US CPI and PPI reports fell below market expectations, temporarily easing immediate rate-hike fears. US Producer Price Index (PPI) declined to 5.5% on a yearly basis in June, down from 6% in May and below the market expectation of 6.2%. On a monthly basis, the PPI dropped by 0.3%, a notable shift from the 0.6% increase recorded in May. The Federal Reserve's policy outlook in light of recently softened US inflation data but escalating tensions in Middle East will be keenly awaited. Currently, the yellow metal is quoting lower by 0.37% at $4036.90 an ounce whereas silver futures are down marginally at around $57.38 an ounce.

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