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.

Spot gold prices moved higher and spot silver climbed sharply in early U.S. trading Friday as oil retreated on renewed hopes for a truce between the United States and Iran. Bullion nevertheless remained headed for a weekly loss as elevated Treasury yields and expectations for further Federal Reserve tightening pressured the market.

At the time of writing, spot gold traded near $4,300.00 an ounce, gaining 0.62% during the session. Spot silver traded near $64.760, rising 1.62%.

Positioning continued to favor tighter monetary policy after stronger U.S. activity data, lower jobless claims and firmer housing figures. Those readings reinforced the market view that the Fed’s September rate increase might not mark the end of the cycle.

Traders assigned about a 71% probability to another 25 basis point increase in October. The dollar index held near 101.2 after touching a two month high, while the yield on the benchmark 10 year Treasury note remained near 5.1%.

August durable goods orders were virtually unchanged after July’s increase was revised downward to 0.9%. The August result exceeded expectations for a 0.4% decline.

Orders excluding transportation increased 0.3% following a 0.7% gain in July. The stronger than expected headline reading kept pressure from interest rates pointed against gold ahead of the final consumer sentiment and inflation expectations data scheduled for 10:00 a.m. ET.

Markets remained focused on whether stronger demand for goods could provide the Fed with more room to maintain tight policy. That possibility continued to challenge bullion even as gold and silver posted gains during Friday’s early trading.

The Strait of Hormuz and relations between the United States and Iran remained the central risks facing the oil market. Even so, the latest movement in crude showed that diplomatic efforts were partially offsetting fears about supply.

American and Iranian negotiators in New York were exploring a phased route out of the war. The potential plan would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade on Iran.

At the same time, Houthi attacks against Saudi Arabia continued to threaten regional oil supply. Brent crude traded near $105.26 a barrel, down 1.3%, while WTI traded near $92.78, down 1.9%.

Lower crude prices reduced the immediate inflation impulse that had supported Treasury yields and the dollar. That shift offered gold some marginal support, although the unresolved risk to shipping continued to sustain defensive demand for bullion.

Global equities were firmer before the U.S. opening bell as buying tied to artificial intelligence offset concerns about oil, yields and Middle East risks. At 5:15 a.m. ET, Dow futures gained 162 points, or 0.31%, while S&P 500 futures rose 23.75 points, or 0.31%.

Nasdaq 100 futures advanced 188 points, or 0.61%. The S&P 500 and Nasdaq remained on track for weekly gains, led by technology and communication services shares, though Brent above $100 and the 10 year yield near 5.1% restrained broader demand for risk.

The main outside markets continued to present a mixed picture for precious metals. Nymex WTI crude remained near $92.78, Brent held near $105.26, and the U.S. dollar index was firmer for the week but below its recent highs near 101.2.

Technically, gold bulls were seeking a return above the resistance zone from $4,304.00 to $4,345.00. A sustained move beyond that area would target $4,396.00 and then $4,400.00, while bears were looking for a break below $4,245.00, followed by $4,216.00 and the range from $4,181.00 to $4,216.00.

Silver bulls were attempting to push prices above the area from $64.920 to $65.830. A move through that zone would target $67.231 and then $68.000, while a break below $62.750 would expose $62.350 and then $61.460, with initial resistance at $64.920 and $65.830.

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.