Gold holds $4,000 as Fed hawkishness offsets renewed Gulf risk - Kitco PM Report

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Gold holds $4,000 as Fed hawkishness offsets renewed Gulf risk - Kitco PM Report teaser image

(Kitco NewsWire) - Spot gold and silver prices are firmer late Thursday as lower Treasury yields and a softer U.S. dollar helped metals rebound from Wednesday’s selloff while traders reassessed U.S.-Iran risk in the Strait of Hormuz. At the time of writing, spot gold was trading near $4,027.40 an ounce, up 0.73%, while spot silver was trading near $57.800, up 0.87% on the session.

The U.S. data mix helped stabilize the metals complex after three sessions of forced de-risking. May PCE inflation rose 0.4% on the month and 4.1% from a year earlier, while core PCE rose 0.3% on the month. The 10-year Treasury yield slipped to the 4.4% area and the two-year yield traded near 4.12%, easing one pressure point for non-yielding assets, while stock-index futures advanced after the inflation data.

The June 17 Federal Reserve meeting remains the positioning anchor. The FOMC held the federal-funds target range at 3.50% to 3.75%, but the updated projections lifted the median 2026 funds-rate path to 3.8% from 3.4% in March and raised the 2026 PCE inflation projection to 3.6% from 2.7%. That has kept gold and silver rallies short-covering-led rather than conviction-led, with traders still pricing a higher-for-longer policy path. 

The Strait of Hormuz trade is no longer a one-way closure shock, but it remains a live headline risk for gold, oil and rates. Brent crude fell earlier to $72.24 a barrel, back near prewar levels, after tanker traffic through the strait doubled over 24 hours and vessels resumed transiting with satellite signals switched on. Late-session headlines then shifted the tone after a Singapore-flagged cargo ship attack in the strait, lifting oil prices about 2% and reviving a smaller geopolitical bid in gold. The immediate panic premium has faded, but the market is still assigning value to gold as insurance against a renewed shipping shock.

The key outside markets see Nymex WTI crude oil prices firmer and trading around the $70 area, while Brent crude was in the mid-$70s after touching $72.24 earlier in the session. The U.S. dollar index is lower. 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 $4,020.00 to $4,040.00 resistance zone, with a sustained move targeting $4,180.00 and then $4,200.00. Bears' next near-term downside price objective is a break below $3,950.00, with deeper downside targets at $3,900.00 and then $3,880.00. First resistance is seen at $4,040.00 and then at $4,180.00. First support is seen at $3,950.00 and then at $3,900.00.

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Spot silver bulls' next upside price objective is to drive prices back above the $59.00 area, with a move above that zone targeting $61.00 and then $62.00. The next downside price objective for the bears is a break below the $56.00 to $57.00 support zone, with deeper downside targets at $52.00 and then $51.00. First resistance is seen at $59.00 and then at $61.00. Next support is seen at $57.00 and then at $56.00.

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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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