Gold and silver prices posted modest gains in late-afternoon U.S. trading on Tuesday, as safe-haven demand driven by geopolitical concerns over the Strait of Hormuz offset headwinds from a stronger U.S. dollar and persistent elevated interest rate expectations. Spot gold was trading near $4,412.50 per ounce, up 0.56% on the session, while spot silver traded at $65.680, up 0.13%, according to Kitco News. Market participants remain focused on upcoming economic data, with Wednesday's Consumer Price Index report and Thursday's producer price data expected to influence positioning.
Last week's weaker jobs data provided support for rate-sensitive gold, but a rebound in crude oil prices and persistent inflation concerns have shifted September Federal Reserve rate-cut expectations closer to a coin toss scenario. The 10-year Treasury yield remained near 4.7% while the U.S. dollar strengthened, providing mixed signals for gold as defensive flows supported prices but limited upside momentum. Equity markets showed weakness after reaching record levels last week.
The S&P 500 fell 0.3% to 7,728.20, the Dow Jones Industrial Average declined 0.3% to 53,791.85, and the Nasdaq Composite dropped 0.6% to 26,445.45. The Russell 2000 gained 0.3% to 3,027.12. European indices displayed mixed results, with the Stoxx 600 up 0.05% at 661, Germany's DAX gaining 0.17%, Italy's FTSE MIB rising 0.13%, while the FTSE 100 slipped 0.16% and France's CAC 40 fell 0.13%.
Geopolitical tensions in the Strait of Hormuz remained the primary source of risk premium across metals and energy markets. Iran's newly appointed Supreme National Security Council secretary stated the waterway would remain closed unless the United States accepted Tehran's conditions, while President Donald Trump introduced additional demands for compensation from Iran. Pakistan had raised hopes for a possible arrangement, but market price action on Tuesday indicated participants were not yet pricing in a near-term reopening.
Brent crude settled at $88.91 per barrel, up 1.4%, while West Texas Intermediate crude settled at $83.20, up 1.3%, sustaining inflation risk and providing greater support to gold than silver. Technically, spot gold bulls aim to push prices back above the $4,360 to $4,380 resistance zone, with sustained momentum potentially targeting $4,480 and then $4,500. Bears' immediate downside objective targets a break below $4,350, with deeper targets at $4,300 and the $4,180 to $4,200 zone.
First resistance is identified at $4,360 to $4,380 and then $4,480, with first support at $4,350 and secondary support at $4,300. For silver, bulls aim to drive prices back above the $66.51 pivot level, with further upside targeting $71.26 and then $72.08. Downside technical objectives include a break below $64.00, with deeper targets at $61.75 and then $60.835.
First resistance is at $66.51 and then $71.26, while next support is at $64.00 and then $61.75. Source: Kitco News
Source: kitco.com