Gold, silver trade higher on easing oil, shifting safe-haven demand

Gold and silver prices edged higher on Thursday (June 4), with COMEX gold and silver both posting modest gains amid a softer dollar, easing crude oil, and shifting geopolitical expectations around the West Asia conflict.

COMEX gold was last at $4,493.50 per ounce, up $26.60 or 0.60%, while COMEX silver stood at $73.865 per ounce, rising $0.171 or 0.23% in early trade.

Gold holds gains as dollar softens, risk sentiment shifts

Gold prices gained support as the US dollar eased, making bullion cheaper for holders of other currencies and improving demand sentiment for the metal. The move came as investors weighed evolving geopolitical developments, including renewed hopes for a possible de-escalation in the West Asia following reports of a ceasefire arrangement between Israel and Lebanon.

Broader expectations of potential progress toward reducing regional tensions, including speculation around a possible pathway to easing US–Iran hostilities, also influenced safe-haven flows, keeping gold supported but preventing sharper upside momentum.

Oil prices also retreated in early trade, reflecting optimism around easing geopolitical risk premiums. Lower crude typically reduces inflationary pressure concerns, which can moderate aggressive safe-haven demand for gold.

On the macroeconomic front, recent Federal Reserve commentary highlighted a mixed outlook. The Fed’s latest Beige Book noted steady US economic activity and stable employment, while also flagging lingering impacts from elevated energy prices linked to earlier geopolitical disruptions.

Officials remained divided on the policy outlook, with some suggesting inflation risks could fade, while others warned that strong growth and corporate earnings could keep pressure on interest rates.

Silver tracks gold higher, industrial sentiment in focus

Silver mirrored gold’s upward bias, rising modestly to $73.865 per ounce, supported by the broader precious metals trend and a weaker dollar.

Broader cues: Policy uncertainty and geopolitical easing

Investor attention remains split between macroeconomic signals and geopolitical developments. While easing tensions in the West Asia have reduced immediate safe-haven demand, uncertainty around US monetary policy continues to provide underlying support for precious metals.

Some Federal Reserve officials have suggested that inflation pressures from the conflict may not persist, while others have flagged the risk that strong domestic economic momentum could still necessitate tighter policy conditions later this year.

-With Reuters inputs