AP TOKYO: Shares in many markets fell on Friday as investors fretted over the mounting crisis in the Arabian Gulf and lingering worries about trade conflict between the US and China.
The US has blamed the suspected attacks on Thursday on two oil tankers near the strategic Strait of Hormuz on Iran. That has triggered the latest bout of selling in the markets with investors worrying about a potential escalation. The key concern centers on the supply of oil. One third of all oil traded by sea, which amounts to 20 percent of oil traded worldwide, passes through the strait.
The US military on Friday released a video it said shows Iran’s Revolutionary Guard removing an unexploded limpet mine from one of the oil tankers targeted near the Strait of Hormuz, suggesting that Iran sought to remove evidence of its involvement from the scene. Iran denies being involved.
“The attack on two oil tankers in the Gulf of Oman has raised the geopolitical temperature even further in the region, at a time when it is high already, given the strained relations between the US and Iran,” said Michael Hewson, chief market analyst at CMC Markets.
In Europe, Germany’s DAX tumbled 0.8 percent to 12,069 in midday trading. Britain’s FTSE 100 fell 0.5 percent to 7,328 and France’s CAC 40 also dipped 0.5 percent to 5,348.
Earlier, Japan’s benchmark Nikkei 225 edged up 0.4 percent to finish at 21,116.89. Hong Kong’s Hang Seng slipped 0.7 percent to 27,118.35, while the Shanghai Composite fell nearly 1 percent to 22,881.97.
Concerns over Gulf conflict escalation weigh on markets
Concerns over Gulf conflict escalation weigh on markets
Silver crosses $77 mark while gold, platinum stretch record highs
- Spot silver touched an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits
- Spot platinum rose 9.8% to $2,437.72 per ounce, while palladium surged 14 percent to $1,927.81, its highest level in over 3 years
Silver breached the $77 mark for the first time on Friday, while gold and platinum hit record highs, buoyed by expectations of US Federal Reserve rate cuts and geopolitical tensions that fueled safe-haven demand.
Spot silver jumped 7.5% to $77.30 per ounce, as of 1:53 p.m. ET (1853 GMT), after touching an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits, its designation as a US critical mineral, and strong investment inflows.
Spot gold was up 1.2% at $4,531.41 per ounce, after hitting a record $4,549.71 earlier. US gold futures for February delivery settled 1.1% higher at $4,552.70.
“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Markets are anticipating two rate cuts in 2026, with the first likely around mid-year amid speculation that US President Donald Trump could name a dovish Fed chair, reinforcing expectations for a more accommodative monetary stance.
The US dollar index was on track for a weekly decline, enhancing the appeal of dollar-priced gold for overseas buyers.
On the geopolitical front, the US carried out airstrikes against Daesh militants in northwest Nigeria, Trump said on Thursday.
“$80 in silver is within reach by year-end. For gold, the next objective is $4,686.61, with $5,000 likely in the first half of next year,” Grant added.
Gold remains poised for its strongest annual gain since 1979, underpinned by Fed policy easing, central bank purchases, ETF inflows, and ongoing de-dollarization trends.
On the physical demand side, gold discounts in India widened to their highest in more than six months this week as a relentless price rally curbed retail buying, while discounts in China narrowed sharply from last week’s five-year highs.
Elsewhere, spot platinum rose 9.8% to $2,437.72 per ounce, having earlier hit a record high of $2,454.12 while palladium surged 14% to $1,927.81, its highest level in more than three years.
All precious metals logged weekly gains, with platinum recording its strongest weekly rise on record.
