Gold and silver prices fall as Iran strikes revive oil risk - Kitco AM Report

Kitco Media
By Kitco NewsWire
Published
Updated
Kitco NewsWire
Automated news drafting. Human verification.

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.

Gold and silver prices fall as Iran strikes revive oil risk - Kitco AM Report teaser image

(Kitco NewsWire) - Spot gold prices are down and spot silver prices are sharply lower in early U.S. trading Tuesday, as a firmer U.S. dollar and renewed oil volatility offset support from lower Treasury yields. At the time of writing, spot gold was trading near $4,512.50 an ounce, down 1.26%, while spot silver was trading near $76.085, down 2.55% on the session.

The U.S. data calendar is active after Monday’s Memorial Day closure. Traders are watching the March S&P/Case-Shiller home price index at 9 a.m. ET and May consumer confidence at 10 a.m. ET, before Richmond Fed manufacturing on Wednesday and the April personal income, spending and inflation data on Thursday. The rate backdrop is less hostile than last week, with the 10-year Treasury yield near the 4.5% area, but the dollar remains firm enough to keep bullion pinned near the lower end of its recent range.

The Strait of Hormuz remains the main geopolitical transmission channel into energy, inflation expectations and precious metals. Monday’s sharp oil selloff on U.S.-Iran deal hopes reversed after U.S. strikes on Iranian targets in southern Iran raised uncertainty around the fragile cease-fire and reopening talks. Brent crude rebounded above $95 a barrel, while WTI moved back toward $92 after having fallen hard on peace-deal optimism. 

The current impact on gold is mixed: renewed Hormuz uncertainty supports defensive demand, but any oil-led inflation impulse can keep rate expectations and the dollar elevated. Across other markets, the clearest transmission remains in crude, refined fuels, shipping risk, Treasury duration, the dollar and energy-linked equities.

Global equities were mixed before the U.S. open. U.S. futures pointed modestly higher as investors continued to price some probability of a U.S.-Iran framework deal, even after the latest strikes. In Europe, Germany’s DAX and France’s CAC 40 were lower, while Britain’s FTSE 100 was firmer. In Asia, Japan’s Nikkei 225 slipped from record highs and South Korea’s Kospi rose 2.6% after a holiday.

The key outside markets see Nymex WTI crude oil prices higher and trading around $91.77 a barrel, while Brent crude was near $95.24. The U.S. dollar index is firmer. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.5% area.

article image

Technically, spot gold bulls’ next upside price objective is to push prices back above the $4,523 to $4,546 resistance zone, with a sustained move targeting $4,573 and then $4,581. Bears’ next near-term downside price objective is a break below $4,503.20, with deeper downside targets at $4,490 and then $4,453. First resistance is seen at $4,523 and then at $4,546. First support is seen at $4,503.20 and then at $4,490.

article image

Spot silver bulls’ next upside price objective is to drive prices back above the $76.80 to $78.00 area, with a move above that zone targeting $78.92 and then $83.61. The next downside price objective for the bears is a break below $75.55, with deeper downside targets at $75.00 and then $74.68. First resistance is seen at $76.80 and then at $78.00. Next support is seen at $75.55 and then at $75.00.

Kitco Media

Kitco NewsWire

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.

Mdi Earth Logo

Share

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.