WHAT YOU NEED TO KNOW
  • Spot gold rose 1.83% to about $4,341.20, while silver climbed 3.59% to $65.12.
  • Lower oil prices, easing Treasury yields and a softer dollar supported precious metals and global equity markets.
  • The Fed raised its target range by 25 basis points to between 3.75% and 4.00%.
  • Gold faces resistance at $4,354, while silver’s next major upside test stands at $65.73.

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 and silver prices surged in late afternoon U.S. trading Thursday as a softer dollar, lower crude oil prices and easing Treasury yields helped precious metals extend their rebound. The advance followed the Federal Reserve’s first rate increase in more than 3 years.

At the time of writing, spot gold traded near $4,341.20 an ounce, gaining 1.83% during the session. Spot silver climbed even faster, rising 3.59% to $65.12.

North American stocks also recovered as falling oil prices and reduced bond market pressure helped equities rebound from Wednesday’s selloff following the Fed decision. The S&P 500 gained 85.95 points, or 1.1%, to close at 7,637.76.

The Dow Jones Industrial Average advanced 316.14 points, or 0.6%, to 51,778.04. The Nasdaq Composite jumped 439.87 points, or 1.7%, to 26,418.30, while the Russell 2000 added 15.82 points, or 0.6%, to reach 2,874.63.

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European markets finished higher as well. The STOXX Europe 600 rose 0.86% to 642.60, London’s FTSE 100 climbed 1.19% to 10,816.14, and Germany’s DAX gained 0.70% to 25,716.71.

France’s CAC 40 added 0.57% to finish at 8,186.93. Italy’s FTSE MIB increased 0.80% to 52,385.50.

Market positioning remains shaped by the Fed’s Sept. 16 rate increase, but Thursday’s trading showed the difference between an anticipated move and a fresh tightening surprise. The central bank lifted its target range by 25 basis points to between 3.75% and 4.00%.

Fed officials’ projections still indicate at least one additional increase this year, keeping the broader rate environment restrictive for gold. However, retreating oil prices, falling Treasury yields and a softer dollar gave bullion room to recover.

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The benchmark 10 year Treasury yield declined to 4.93% from 5.01% late Wednesday. Meanwhile, the dollar eased following its Fed driven advance, reducing another source of pressure on precious metals.

Pending home sales rose 0.3%, a modest gain that did not change the broader picture of housing pressure from mortgage rates near 7%. Gold’s rebound therefore remained constructive but conditional, with Fed guidance still limiting upside unless inflation pressure fades further.

Gold moved back above $4,300 and approached resistance at $4,354. Silver reclaimed $64.86 and advanced toward a resistance range between $65.73 and $66.99, although neither metal had completed a full technical reset.

Gold needs a sustained move above $4,354 to improve its technical structure, with additional upside targets at $4,403 and $4,434. Initial support stands at $4,283, followed by $4,256, while a deeper downside target sits at $4,215.59.

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Silver bulls face their first major test at $65.73. A break above that level would target $66.99 and then $68.17, while bearish pressure would strengthen below $63.44, opening potential declines toward $62.38 and $62.06.

The Strait of Hormuz remains the principal geopolitical route through which oil prices, inflation expectations and defensive demand affect the market. Thursday’s impact came from easing supply concerns as oil declined for a second consecutive session.

Saudi Arabia worked to transport additional crude through Oman while investors evaluated a faster restoration of East-West Pipeline capacity. WTI settled at $101.91 a barrel and Brent finished at $104.82, easing immediate inflation pressure and supporting lower Treasury yields, gold and equities.

The conflict remains unresolved, while constrained Hormuz flows, risks to Saudi infrastructure and Red Sea disruptions continue to support crude prices and background demand for bullion. For now, lower oil, easing yields and a softer dollar have returned momentum to precious metals, but resistance levels and future Fed policy remain decisive barriers.

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.