Analysis: Iran's vow to strike oil facilities in three Middle Eastern countries sent oil prices soaring and put downward pressure on gold and silver prices.

Iran's earlier statement that it would retaliate against attacks on its energy facilities made oil facilities in three Middle Eastern countries legitimate targets, causing oil prices to rise and putting pressure on gold and silver. Spot gold fell more than 3% on Wednesday, reaching its lowest level in over a month; spot silver fell more than 4%, hitting a new low in a month; Brent crude briefly broke through $105 per barrel. David Megher, director of metals trading at High Ridge Futures, said that rising energy prices due to the escalating war are "adding fuel to the fire" for inflation, and the Federal Reserve may be unable to cut interest rates, which continues to put pressure on gold prices. There is no lack of safe-haven demand, but other pressures have overshadowed this demand for gold. The conflict in Iran has lasted for nearly three weeks with little sign of easing, keeping benchmark Brent crude futures prices above $100 per barrel, which, in turn, could exacerbate inflation as rising energy costs affect the wider economy. (Jinshi)