Gold and silver prices rose by over 2% on Monday following reports of progress in US-Iran peace negotiations. The diplomatic developments triggered a decline in oil prices, which dropped by more than 6%. Market analysts suggest that lower energy costs may reduce inflation concerns, potentially easing pressure on the Federal Reserve regarding interest rate hikes.
Despite the rally in precious metals, Bitcoin faced downward pressure, falling to the $76 000 level. The asset is currently recovering from a $6,3 billion hack on the Binance exchange and $643 million in outflows from Bitcoin ETFs. Data from Glassnode indicates that many corporate and ETF investors entered the market at prices between $80 000 and $81 500.
The market currently estimates a 77% probability of a Federal Reserve interest rate hike in December. Investors are now monitoring upcoming events, including the US midterm elections on Tuesday and the national jobs report scheduled for Friday. These factors are expected to influence both the future trajectory of precious metals and broader market sentiment.
