WHAT YOU NEED TO KNOW
  • Spot gold gained 1.42% to about $4,172.40, while silver climbed 1.23% to approximately $61.270.
  • October rate hike odds fell from 70.9% to around 51.5% after weaker job openings and consumer confidence data.
  • Brent crude declined 2.6% to $102.59, while WTI dropped 3.5% to $89.38.
  • Gold faces resistance between $4,190.00 and $4,222.11, while silver confronts resistance from $61.727 to $62.180.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Gold and silver rebounded in late U.S. trading Tuesday after softer labor market and consumer confidence readings helped precious metals recover from Monday’s selloff. Spot gold traded near $4,172.40 an ounce, gaining 1.42%, while spot silver rose 1.23% to about $61.270.

The recovery came even as long dated Treasury yields remained close to multidecade highs. Those elevated yields continued to pressure non yielding gold and equities sensitive to changes in borrowing costs, limiting the relief delivered by the softer economic figures.

North American stocks finished modestly lower as rising long term yields outweighed support from weaker data and declining oil prices. The S&P 500 lost 12.85 points, or 0.2%, to close at 7,670.84.

The Dow Jones Industrial Average dropped 131.59 points, or 0.3%, to 51,349.92. The Nasdaq Composite slipped 22.84 points, or 0.1%, to 26,797.54, while the Russell 2000 fell 9.99 points, or 0.4%, to 2,807.92.

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European equities ended mixed as crude oil, bond yields and shifting sector demand kept risk appetite uneven. The Stoxx Europe 600 advanced 0.3% to 640.28, while Germany’s DAX gained 0.10% to reach 25,399.21.

Italy’s FTSE MIB edged 0.09% higher. France’s CAC 40 fell 0.53% to 8,035.87, and the U.K. FTSE 100 declined 0.45% to 10,636.71.

Market positioning became less hawkish after August JOLTS job openings declined to 7.079 million from 7.335 million in July. That result missed expectations near 7.225 million, while September consumer confidence dropped from 88.6 to 81.9, its lowest reading since 2014.

The softer reports combined with New York Fed President John Williams’ message that there was “no need for urgency” to cool expectations for an October rate increase. Rate hike odds dropped to around 51.5% from 70.9% on Monday, while the two year Treasury yield eased to approximately 4.89%.

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Relief across the bond market remained incomplete. The 10 year Treasury yield traded near 5.25%, while the 30 year yield held close to 5.59%, maintaining pressure on gold and duration sensitive equities.

Markets next face August personal income and PCE inflation Wednesday at 8:30 a.m. ET, followed by ISM manufacturing Thursday at 10:00 a.m. ET. The September employment report is scheduled for Friday at 8:30 a.m. ET.

Softer inflation or payroll figures would reinforce gold’s rebound, while firmer readings would revive the higher yields channel that drove Monday’s metals selloff. The dollar index remained near a two month high, although it retreated from its strongest levels of the session.

The Strait of Hormuz and the broader U.S. and Iran situation remained unresolved, but the immediate oil premium faded as Middle Eastern crude exports showed signs of recovery. Mediators were circulating an amended interim proposal concerning free traffic through the strait and the U.S. blockade on Iranian ports.

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Under the proposal, Iran would permit free traffic through the strait and the U.S. would lift its blockade. Sequencing, oil waivers, frozen assets and nuclear inspections remained disputed points.

Brent crude settled 2.6% lower at $102.59 a barrel, while WTI fell 3.5% to $89.38. Investors weighed recovering regional flows and Saudi export workarounds against the possibility that negotiations could fail.

Lower crude reduced the inflation impulse supporting yields and the dollar, helping gold during the session. At the same time, unresolved shipping risks maintained defensive demand for bullion, while benchmark 10 year Treasury yields remained near 5.25%.

For gold bulls, the next upside objective is a return above the resistance zone from $4,190.00 to $4,222.11. A sustained move would target $4,238.00 and then $4,254.44, while a break below $4,166.49 would expose $4,112.00 and $4,071.86.

Silver bulls face resistance between $61.727 and $62.180, followed by potential targets at $62.834 and $64.080. Bears are targeting a break below $60.310, with deeper downside objectives at $59.706 and $58.770.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.