Gold firms near $4,700, silver slips as Hormuz talks steady oil - Kitco AM Report

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Gold firms near $4,700, silver slips as Hormuz talks steady oil - Kitco AM Report teaser image

(Kitco NewsWire) - Spot gold prices are firmer and spot silver prices are softer in early U.S. trading Thursday, as traders weigh sticky inflation signals, Treasury yields near the 4.4% area and a still-fragile U.S.-Iran/Hormuz backdrop. At the time of writing, spot gold was trading near $4,700.30 an ounce, up 0.26%, while spot silver was trading at $86.980, down 0.44% on the session.

April retail sales rose 0.5% after a revised 1.6% gain in March, while sales excluding gasoline rose 0.3%. Initial jobless claims rose by 12,000 to 211,000 for the week ended May 9, keeping the labor market broadly firm but no longer tightening. The data followed an April producer-price print that lifted rate-sensitive pressure across metals by hardening the market’s inflation view.

The Strait of Hormuz remains the highest-conviction geopolitical variable for energy and metals traders. The channel is still framed by markets as a supply-risk choke point after more than two months of war involving Iran, with U.S. officials pressing Beijing to use its influence with Tehran and both Washington and Beijing agreeing that the strait must reopen. The International Energy Agency’s warning that supply losses are “depleting global oil inventories at a record pace” leaves gold supported by safe-haven demand but capped by the same oil shock through firmer yields and inflation expectations.

Global equity tone was mixed to firmer. U.S. equity futures pointed higher before the open, with S&P 500 futures up 0.3%, Dow futures up 0.7% and Nasdaq futures up 0.2%. In Europe, the FTSE 100 gained 0.5%, France’s CAC 40 rose 0.8% and Germany’s DAX advanced 1.3%. In Asia, Japan’s Nikkei 225 lost 1.0% to 62,654.05, South Korea’s Kospi gained 1.8% to a record 7,981.41 and Hong Kong’s Hang Seng was near flat at 26,389.04.

Traders are watching the post-8:30 a.m. ET digestion of retail sales and weekly jobless claims, along with further comments around U.S.-China talks and Hormuz shipping conditions.

The key outside markets see Nymex WTI crude oil prices softer and trading around $100.86 a barrel, while Brent crude was near $105.44. The U.S. dollar index is firmer. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.4% area.

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Technically, spot gold bulls’ next upside price objective is to push prices back above the $4,711 to $4,723 resistance zone, with a sustained move targeting $4,774. Bears’ next near-term downside price objective is a break below $4,686, with deeper downside targets at $4,561. First resistance is seen at $4,711 and then at $4,723. First support is seen at $4,697 and then at $4,686.

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Spot silver bulls’ next upside price objective is to drive prices back above the $88.00 to $89.73 area, with a move above that zone targeting $100.00. The next downside price objective for the bears is a break below $84.90, with deeper downside targets at $84.00 and then $82.12. First resistance is seen at $88.00 and then at $89.73. Next support is seen at $84.90 and then at $84.00.

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Articles by Kitco NewsWire were generated by Kitco's AI-assisted reporting workflow and reviewed by Kitco News editorial staff, with every claim independently verified before publication. 

Kitco labels all AI-assisted content as part of our commitment to editorial transparency. 

For questions or corrections, contact the Kitco News editorial team.

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