(Kitco NewsWire) - Spot gold and silver prices are sharply lower after the close Tuesday, as rising Treasury yields, a firmer U.S. dollar and persistent oil-linked inflation concerns offset safe-haven demand tied to the Strait of Hormuz. At the time of writing, spot gold was trading near $4,481.20 an ounce, down 1.84%, while spot silver was trading near $73.580, down 5.13% on the session.
Pending home sales rose 1.4% in April to 74.8, beating expectations for a 1.0% gain and rising 3.2% from a year earlier. The housing print was not the day’s main driver for metals. The larger pressure point remained the bond market, with the 10-year Treasury yield near the 4.6% area and the 30-year yield near its highest level since 2007. The move kept gold below $4,500 and pushed silver through the $75 area as traders repriced the cost of holding non-yielding assets.
The Strait of Hormuz remains the core geopolitical transmission channel into metals, energy and rates. Oil futures slipped as traders stayed on U.S.-Iran deal watch after President Donald Trump delayed a planned attack on Iran, but the waterway remains disrupted and the market has not priced a clean reopening.
U.S. equities closed lower, with the Dow Jones Industrial Average down more than 300 points and the S&P 500 and Nasdaq falling for a third straight session. The selloff came as the 10-year yield reached 4.668% and the 30-year yield reached 5.180%, tightening financial conditions and pressuring technology shares. Energy was the relative support area, while basic materials shares weakened alongside the precious metals selloff.
The key outside markets see Nymex WTI crude oil prices lower and settled around $107.77 a barrel, while Brent crude settled near $111.28. The U.S. dollar index is firmer. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.6% area.
Technically, spot gold bulls’ next upside price objective is to push prices back above the $4,530 to $4,550 resistance zone, with a sustained move targeting $4,600 and then $4,715. Bears’ next near-term downside price objective is a break below $4,464.50, with deeper downside targets at $4,370 and then $4,350. First resistance is seen at $4,530 and then at $4,550. First support is seen at $4,464.50 and then at $4,370.
Spot silver bulls’ next upside price objective is to drive prices back above the $75.00 to $76.63 area, with a move above that zone targeting $78.00 and then $79.00. The next downside price objective for the bears is a break below $73.03, with deeper downside targets at $72.00 and then $71.00. First resistance is seen at $75.00 and then at $76.63. Next support is seen at $73.03 and then at $72.00.
