Gold rebounds, but silver extends losses as oscillating oil prices spark market volatility

Market Overview - Gold prices rebounded slightly, with spot gold at $4,662.51 per ounce, a 0.3% increase, while gold futures settled at $4,662.10, up by 1.2% [1] - Silver prices, however, fell further, with spot silver down 1.7% at $71.62 per ounce, despite silver futures rising by 0.8% [2] - Both gold and silver are on track for significant weekly losses, with gold expected to decline nearly 9% and silver over 10% [2] Recent Trends - On Thursday, gold and silver experienced a broad sell-off, with spot prices dropping around 3% due to rising economic concerns related to the Iran war [3] - The volatility in the oil market has been affecting global investor sentiment since the onset of the U.S. and Israel's conflict with Iran [3] - Global equity markets showed mixed results, with European stocks struggling and U.S. futures indicating a negative opening [4] Analyst Insights - Arthur Parish, a metals and mining equity analyst, noted that the recent volatility in gold prices followed an extended rally leading up to the U.S.-Israel strikes on Iran [4] - Parish indicated that much of the recent price movement is attributed to momentum trades unwinding, as both gold and silver had previously seen record rallies in 2025 [5] - The influx of generalist investors and retail participants during the 2025 bull run has since diminished, which may be necessary for gold to initiate another upward movement [6] Demand Factors - Toni Meadows from BRI Wealth Management emphasized that gold and silver prices are influenced by daily demand and a "fear mark-up," rather than serving as a daily hedge against risk assets [6]