On October 5 local time, gold and silver prices ended mixed. London spot gold closed down 0.08% at $4,139.478 per ounce, while London spot silver closed up 0.97% at $61.034 per ounce. On the New York Mercantile Exchange, December gold futures settled at $4,156.8 per ounce, down 0.13%, and December silver futures settled at $61.3 per ounce, up 1.46%.
Analysts noted that as market expectations for a Federal Reserve rate hike this month weakened, the pressure on gold prices from a stronger dollar and elevated U.S. Treasury yields eased somewhat, leaving international gold prices little changed. Although rising U.S. bond yields weighed on precious metals, the global boom in AI infrastructure investment and the ongoing energy transition led some investors to take a favorable view of growth prospects for industrial demand for silver, pushing international silver prices higher on the day.
In the domestic market, on October 6, gold jewelry prices at mainstream brands fluctuated slightly. As of the time of reporting, Laomiao's latest pure gold jewelry price was 1,251 yuan per gram, up 2 yuan per gram from 1,249 yuan the previous day. Lao Feng Xiang stood at 1,251 yuan per gram, unchanged from the prior day. Chow Sang Sang was at 1,247 yuan per gram, down 5 yuan per gram from 1,252 yuan the previous day.
On October 5, international oil prices fell. At the close, the November light crude oil futures contract on the New York Mercantile Exchange settled at $89.43 per barrel, down 1.84%, while the December London Brent crude oil futures contract settled at $100.32 per barrel, down 1.89%.
"The Group of Seven (G7) announcing a coordinated release of 100 million barrels of strategic petroleum reserves eased expectations of tightening crude supply," an industry insider said. The G7 announced a joint release of up to 100 million barrels of emergency oil and diesel reserves, to be implemented over the next four months, with a large volume of diesel expected to flow quickly into the market in the initial phase to supplement supply.
Goldman Sachs believes that the G7's release of 100 million barrels of reserves is an emergency intervention aimed at the current high diesel prices. In the short term, it will directly increase the supply of crude oil and diesel in the market, creating clear downward pressure on oil prices. Market expectations for continued energy price increases have noticeably cooled, and the geopolitical premium supporting higher oil prices will gradually shrink. Combined with Saudi Arabia's cut in its Asian crude oil selling price, which has dampened bullish sentiment, oil prices will continue to face pressure in the short term.
Other analysts said that, on one hand, Saudi Arabia's reduction of its Asian benchmark crude price and the continued progress of U.S.-Iran talks are both bearish for oil prices. On the other hand, reports earlier on October 5 said that Saudi Arabia's east-west oil pipeline was shut down due to an attack, prompting a brief spike in oil prices. After informed sources said operations were normal, oil prices turned lower and closed in negative territory.