Fed inflation warning crushes precious metals: Gold at risk of breaking below $4800, silver down for six consecutive days.

Notice that as the Iran war escalated and caused crude oil prices to soar, silver recorded its sixth consecutive trading day decline, while gold prices stabilized after plummeting nearly 4% in the previous trading day. Previously, the Federal Reserve warned that the Middle East war and rising energy prices pose inflation risks. In after-hours trading, gold and silver were trading at $4823.90 per ounce and $75.42 per ounce, respectively. The Federal Reserve announced that it would maintain interest rates in the 3.5%-3.75% range (as expected). Federal Reserve Chairman Powell stated that maintaining interest rates at a slightly restrictive level is crucial. The Fed added a new statement to its policy guidance, indicating that the impact of the Middle East conflict on the economy is "uncertain". On Wednesday, Powell made a rare statement about his future at the Federal Reserve following a Department of Justice investigation. He stated that he has no intention of resigning from his position as a governor until the investigation is completed. Powell also mentioned that if a successor is not confirmed before his term ends in May, he will serve as interim chairman - a temporary position granted by the Federal Reserve in the event of a vacancy in the chairman role. The Department of Justice investigation has raised concerns about political interference in the Federal Reserve, weakening confidence in U.S. assets and supporting gold prices. Oil supply shocks intensify inflation concerns, gold under pressure The escalation of the Iran war leading to soaring energy prices, combined with a higher-than-expected 0.7% month-on-month increase in the U.S. Producer Price Index (PPI) in February, had already caused a significant drop in precious metals. This has heightened speculation that the Federal Reserve will delay rate cuts this year. Developments in the Middle East on that day - including attacks on Iran's massive South Pars gas field, followed by an attack on the world's largest LNG plant in Qatar - led to a sell-off of risk assets, including stocks, forcing some investors to sell gold holdings for cash. Ewa Manis, commodities strategist at ING, stated in a report that the sharp decline in precious metals "appears to be a cross-asset position adjustment". She pointed out, "Crude oil is reacting to supply risks, while the decline in gold may be due to profit-taking and widespread liquidation by investors amidst the sell-off of risk assets, a stronger dollar, and rising real yields."