Galaxy Futures: Geopolitical Tensions Rise and Federal Reserve Turns Hawkish, Gold and Silver Face Double Pressure

Last night, the intensity of geopolitical conflicts in the Middle East escalated. Iran’s energy facilities were attacked, and it retaliated by striking oil facilities in other Middle Eastern countries, pushing indicators again—such as energy prices, the U.S. dollar index, and the 10-year U.S. Treasury yield—higher. At the same time, the U.S. February PPI also unexpectedly came in significantly above expectations. Although this data has not yet been able to fully reflect the impact brought by the geopolitical conflict, it has intensified market concerns about inflation risk. The Federal Reserve also remains cautious: it kept interest rates unchanged this time, saying it needs to stay on the sidelines given the current level of extreme uncertainty. However, judging from the voting results and the dot plot, officials overall have become more hawkish (all officials except Milan voted in favor of keeping rates unchanged), which has further increased pressure on gold and silver. Looking ahead, as long as the situation remains unclear, the market will continue to trade and wrestle mainly around geopolitics-related news, and gold and silver are expected to face a period of “headwinds” in the short term. (Galaxy Futures)