Gold settles higher, silver jumps 4%

June gold futures rose 0.45%, or $21.60, to $4,708.30 an ounce

Gold and silver prices rose on Wednesday despite concerns over stalled diplomatic efforts between the US and Iran, and new signs of rising inflationary pressures in the US.

June gold futures rose 0.42%, or $20, to $4,706.70 per ounce.

May silver futures jumped 4.41%, or $3.758, to $88.888 per ounce, marking gains for the 10th consecutive session.

The positive performance of precious metals came amid market volatility driven by fears of renewed military escalation in the Middle East, after Washington this week rejected Iran’s latest proposal to end the war.

These concerns have added further uncertainty to the outlook for US monetary policy, especially after annual producer price inflation in April accelerated to its highest level since December 2022.