Gold and Silver Prices Rise Amid Global Equity Selloff

Spot gold and silver prices rebounded on Thursday, with gold rising 1.05% to approximately $4,147.50 and silver increasing 1.99% to $56.620. The recovery was driven by a weaker U.S. dollar and falling U.S. Treasury yields, which dropped to 5.08%, the lowest level in three weeks. Safe-haven demand further accelerated following a global equity selloff in AI-linked technology companies.

This price increase occurred despite strong U.S. economic data, including stronger-than-expected retail sales and a surge in September producer prices. Monthly producer prices rose 1.3%, marking the largest monthly increase since March 2022.

Geopolitical instability in the Strait of Hormuz added to defensive demand after projectile attacks sank a dry bulk carrier and a container ship. The Government of Iran indicated it is intensifying strikes in response to a U.S. blockade of Iranian ports. In contrast, the Government of the United States is considering easing sanctions on specific oil tankers to reduce shipping costs.