(Kitco NewsWire) - Spot gold prices are lower and spot silver prices are modestly lower after the close Tuesday, as a firmer U.S. dollar and renewed Middle East uncertainty kept bullion under pressure while U.S. equities advanced to record highs. At the time of writing, spot gold was trading near $4,507.40 an ounce, down 1.38%, while spot silver was trading near $76.975, down 1.41% on the session.
U.S. consumer confidence slipped to 93.1 in May from a revised 93.8 in April, but still beat the 91.9 consensus. The Case-Shiller national home-price index rose 0.7% from a year earlier in March, slowing from 0.8% in February, while the 20-city index rose 0.8% year over year. The data mix left the macro signal uneven: household confidence softened under inflation pressure, housing-price growth continued to cool and Treasury yields eased, but the dollar remained firm enough to keep gold below the $4,523 area.
The Strait of Hormuz remains the main geopolitical transmission channel into energy, inflation expectations and precious metals. U.S. forces carried out what Washington called defensive strikes on Iranian missile sites and mine-laying boats, while Tehran accused the U.S. of violating the seven-week ceasefire. Negotiations continued, with reports suggesting a possible two-month ceasefire extension that could reopen Hormuz while easing the naval blockade on Iranian ports.
The current impact on gold is mixed: the risk of a ceasefire breakdown supports defensive demand, but any credible reopening path reduces the energy-inflation shock that had supported bullion through lower real-rate expectations. Across other markets, the cleanest signals were a divergence between WTI and Brent, lower Treasury yields, record U.S. equity closes and continued volatility in energy-sensitive sectors.
U.S. equities closed higher, with the S&P 500 rising 0.6% to 7,519.12 and the Nasdaq Composite gaining 1.2% to 26,656.18, both record closes. The Dow Jones Industrial Average slipped 0.2% to 50,461.68, while the Russell 2000 rose 1.8% to 2,920.54. Tech shares led the tape, while Treasury yields eased on hopes that a U.S.-Iran agreement could improve oil flows and reduce inflation pressure.
The key outside markets see Nymex WTI crude oil prices lower and settled around $93.89 a barrel, while Brent crude settled near $99.58. 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.
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 $4,641. Bears’ next near-term downside price objective is a break below $4,490, with deeper downside targets at $4,453 and then $4,430. First resistance is seen at $4,523 and then at $4,538. First support is seen at $4,490 and then at $4,453.
Spot silver bulls’ next upside price objective is to drive prices back above the $77.75 to $78.92 area, with a move above that zone targeting $80.00 and then $83.61. The next downside price objective for the bears is a break below $76.80, with deeper downside targets at $75.00 and then $74.68. First resistance is seen at $77.75 and then at $78.92. Next support is seen at $76.80 and then at $75.00.
