Rhona O'Connell warns that high interest rates and geopolitical tensions continue to pressure gold and silver prices.
Rhona O'Connell, Head of Market Analysis for EMEA & Asia at StoneX, reports that interest rates remain the primary driver for precious metals prices despite escalating tensions between the United States and Iran. While gold and silver face downside risks, O'Connell notes that professional markets are reacting primarily to rate moves and geopolitical shifts. The analysis highlights that while India shows growing interest in both metals, the professional market remains cautious. O'Connell observed that the 10-year yield rise to 4.6% acts as a headwind for gold and silver. Additionally, she noted that while energy costs significantly influenced June's inflation data, supply chain disruptions will continue to exert pressure. Market data shows gold futures opened at $4,005.60 on July 20, 2026, following a weekend of U.S. strikes against Iranian military targets. O'Connell also identified a decline in silver ETF positions, though some bargain hunting occurred recently. She concludes that the Federal Reserve faces a delicate challenge as it determines whether to tighten policy further to control persistent inflation.