United States Antimony Corp. (NYSE:UAMY) shares are declining Thursday as gold, silver and broader precious metals prices come under pressure from a confluence of forces tied to escalating conflict in the Middle East.
- United States Antimony shares are sliding. Why is UAMY stock dropping?
Gold Drops 2% as Middle East Tensions Drive Oil and Yields Higher
Spot gold shed nearly 2% to $3,984.64 per ounce on Thursday, touching ground not seen since July 1. The retreat was driven by surging oil prices and climbing Treasury yields, both consequences of an intensifying confrontation between American and Iranian forces that is fanning inflation anxiety and strengthening the argument for interest rates to remain elevated well into the year, according to Reuters.
Silver gave back 3.6% to settle at $55.68 per ounce, platinum fell 3.1% and palladium surrendered 4.1%, leaving virtually no corner of the metals market unscathed.
The logic connecting the Middle East to gold prices runs through energy. Iran signaled to Yemen’s Houthi forces that they should stand ready to choke off Red Sea shipping traffic if American strikes reach Iranian power generation facilities, a threat that sent oil toward a one-month high. Higher energy costs feeds directly into inflation expectations, which lift Treasury yields and firm up the dollar, simultaneously making gold costlier for buyers outside the United States and less attractive relative to assets that actually generate a return.
U.S. and Iran Trade Strikes as Diplomacy Sends Mixed Signals
The geopolitical backdrop that is driving energy and inflation anxiety continued to shift rapidly Thursday. U.S. Central Command carried out a second round of strikes against Iranian military positions within a 12-hour period, directing fire at coastal defense installations and cruise missile infrastructure on Greater Tunb Island that Tehran had deployed to menace cargo vessels moving through the Strait of Hormuz.
The operation followed an earlier salvo on Wednesday morning after President Donald Trump made clear that military action would escalate if Iran declined to engage in negotiations.
UAMY Shares Are Plummeting
UAMY Price Action: United States Antimony shares were down 11.99% at $5.20 at the time of publication on Thursday, according to Benzinga Pro.
Image: Phawat/Shutterstock
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