Among other metals, spot silver XAG= rose 0.7% to $59.2135 per ounce, platinum XPT= gained 0.8% to $1,642.74, and palladium XPD= inched up 1% at $1,294.19.
Gold rises to two-week high on safe-haven demand
Gold climbed to a two-week high on Wednesday, supported by technical buying and some safe-haven demand, as investors monitored developments in the Middle East and braced for next week's U.S. Federal Reserve meeting for clues on the interest-rate outlook.
Spot gold XAU= rose 0.9% to $4,112.29 per ounce by 0811 GMT, having hit its highest level since July 7 earlier in the day. U.S. gold futures GCcv1 for August delivery gained 1% to $4,116.80.
"Concerns that higher oil prices could fuel inflation and keep interest rates higher for longer are being offset by safe-haven demand and hopes that ongoing diplomatic efforts between the U.S. and Iran could still lead to a de-escalation of the conflict, easing pressure on oil prices," said Ricardo Evangelista, senior analyst at ActivTrades.
While the current rebound in prices is likely to face headwinds from volatile energy prices, the $4,000 per ounce level continues to provide strong technical support, he added.
Middle East tensions and Fed outlook support bullion
Earlier on Wednesday, U.S. Secretary of State Marco Rubio said Washington is willing to negotiate an end to the Iran crisis but Tehran is not serious about talks.
Meanwhile, three oil tankers loaded with Saudi crude for China and India reversed course in the Red Sea on Tuesday after threats from Yemen's Iran-aligned Houthis, sending oil prices higher. O/R
Gold prices have fallen from record highs hit in January after the war elevated energy prices, stoking inflation fears and heightening the likelihood of higher-for-longer interest rates. While gold is typically seen as an inflation hedge, high interest rates tend to diminish the appeal of the non-yielding asset.
Meanwhile, the Fed is likely to keep its key interest rate steady for the rest of 2026, data from a Reuters Poll showed, with markets pricing in two rate rises by end-March next year.
Traders now anticipate about a 67% chance of an interest rate hike in September, the CME FedWatch Tool's data showed. FEDWATCH/
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