Gold and silver steady as traders weigh Iran tensions, Fed rate outlook

Gold and silver showed little movement on Friday as traders balanced competing concerns about Middle East geopolitical risk and the Federal Reserve's monetary policy direction. Gold steadied after a moderate rise the previous day, while silver held above $59 an ounce despite being on track to finish the week lower. President Donald Trump's statement that the United States would refrain from attacking Iran before the November midterm elections tempered some risk-off sentiment. Trump also characterized current US-Iran discussions as "productive," though Iran continued intensifying attacks on tankers transiting the Strait of Hormuz during the week.

Market pricing reflected expectations for unchanged Federal Reserve interest rates this month, with approximately 82% probability assigned to no change. December rate expectations showed an 81% probability of a hike, influenced by St. Louis Federal Reserve President Alberto Musalem's recent comments indicating rates may need to rise over the next six to nine months to bring inflation closer to the Fed's 2% target. Additional market factors included a hurricane disrupting US offshore oil production in the Gulf of Mexico, which eased oil prices alongside Trump's Iran remarks.