WHAT YOU NEED TO KNOW
  • Spot silver climbed 1.63% to $66.970, while gold gained 0.32% to trade near $4,356.80 an ounce.
  • A firm dollar and Treasury yields near 5.0% limited gold’s advance as markets reassessed the Federal Reserve’s rate path.
  • Brent crude settled near $99.25 after briefly falling below $98, easing the immediate inflation shock tied to the Strait of Hormuz.
  • Silver faces resistance at $67.231 and $68.000, while gold must clear the $4,393.68 to $4,400.00 zone.

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.

Silver sharply outpaced gold in late U.S. trading Tuesday as falling oil prices eased the immediate inflation shock tied to the Strait of Hormuz. Treasury yields near 5.0% and a firm U.S. dollar limited gold’s advance even as both precious metals moved higher.

Spot gold traded near $4,356.80 an ounce at the time of writing, gaining 0.32% for the session. Spot silver climbed 1.63% to about $66.970, giving the white metal a decisive lead.

U.S. equities closed mixed following Monday’s rally led by artificial intelligence shares. The S&P 500 slipped 0.06 point, less than 0.1%, to 7,764.64 and remained about 0.4% below its record high.

The Dow Jones Industrial Average dropped 185.14 points, or 0.4%, to 51,863.69. Meanwhile, the Nasdaq Composite gained 122.18 points, or 0.5%, to a record close of 27,244.28.

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Smaller companies also advanced, with the Russell 2000 rising 14.56 points, or 0.5%, to 2,889.92. The diverging results reflected a session in which gains were concentrated in parts of the market rather than spread evenly across the major indexes.

European stocks finished mixed to modestly stronger. The Europe wide Stoxx 600 rose 0.13% to 642.78, while Germany’s DAX was nearly unchanged after gaining 0.02% to 25,578.85.

France’s CAC 40 added 0.20% to reach 8,154.91. Britain’s FTSE 100 declined 0.29% to 10,708.33, while Italy’s FTSE MIB lost 0.53% and closed at 52,371.54.

Market positioning remained focused on whether the Federal Reserve’s September rate increase represented a single adjustment or the beginning of another tightening phase. Futures pricing earlier in the session placed the probability of an October 25 basis point increase near 53.1%.

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The dollar index stood near 100.48, while the yield on the benchmark 10 year U.S. Treasury note remained around 5.0%. Those conditions kept pressure on gold and restrained its ability to build a larger advance.

Investors face several economic reports that could influence the rates outlook. September flash U.S. manufacturing and services purchasing managers indexes are due Wednesday at 9:45 a.m. ET, followed by weekly jobless claims Thursday at 8:30 a.m. ET.

August durable goods orders are scheduled for Friday at 8:30 a.m. ET, with final September consumer sentiment following at 10:00 a.m. ET. Stronger activity or firmer price components would maintain pressure on gold through yields and the dollar, while softer readings would give bullion a clearer path above the middle of the $4,300 range.

The risk premium surrounding the Strait of Hormuz eased but remained present. Iran signaled that Gulf shipping could reopen within days if the U.S. lifts pressure and a blockade on Iranian ports, while Saudi Arabia moved to restore exports through its East-West Pipeline and Yanbu port.

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Brent crude briefly dropped below $98 before settling near $99.25 a barrel. That decline reduced the immediate inflation impulse that had supported gold earlier in the conflict, helping equities and silver while partly offsetting gold’s safe haven demand.

Nymex WTI crude traded near the lower portion of the $90 range, while Brent remained near its $99.25 settlement. The combination of cheaper oil, a slightly firmer dollar and elevated Treasury yields left gold caught between easing geopolitical inflation concerns and persistent monetary pressure.

Gold bulls next need to push spot prices through resistance from $4,393.68 to $4,400.00. A sustained advance above that area would target $4,480.00 and then $4,500.00.

For gold bears, the next downside objective is a break below $4,333.11. Additional downside targets stand at $4,300.00 and the range from $4,160.00 to $4,180.00.

Silver bulls face resistance at $67.231 and then $68.000. A move through that zone would place $70.000 in view, followed by the psychologically important $71.000 area.

Silver bears would need a break below $65.898 to regain momentum. Deeper downside targets include the 50 day moving average near $63.280 and the zone between $61.000 and $62.000.

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.