(Kitco NewsWire) - Spot gold and silver prices are higher in late-afternoon U.S. trading Friday, as short covering helped metals stabilize after Thursday’s break while firm Treasury yields, a stronger U.S. dollar and elevated oil prices kept the broader tone defensive. At the time of writing, spot gold was trading near $4,015.06 an ounce, up 0.97%, while spot silver was trading near $55.897, up 0.68% on the session.
Gold’s session range was $3,959.800 to 4,023.83, with the metal dipping below the psychologically important $4,000 level but staying off Thursday’s low. Silver hit its lowest level since Nov. 28 before turning higher, but the metal remains inside a major retracement zone and below the $57.00 area that would signal stronger short-covering follow-through.
North American equities closed lower as the chip selloff deepened and AI-linked momentum stocks remained under pressure. The S&P 500 fell 76.08 points, or 1.0%, to 7,475.69, the Nasdaq Composite lost 361.70 points, or 1.4%, to 25,520.24, the Dow Jones Industrial Average declined 406.55 points, or 0.8%, to 52,146.42 and the Russell 2000 slipped 12.35 points, or 0.4%, to 2,962.22. In Canada, the S&P/TSX Composite fell 76.30 points, or 0.22%, to 35,263.85.
European equities were mixed to lower as technology weakness and Middle East risk weighed on the session. The STOXX Europe 600 fell 3.69 points, or 0.57%, to 640.04, Germany’s DAX declined 84.51 points, or 0.34%, to 24,830.98 and France’s CAC 40 lost 39.05 points, or 0.47%, to 8,338.81. London’s FTSE 100 gained 28.13 points, or 0.27%, to 10,600.37.
Positioning after the latest economic data remains less dovish than the early-week inflation reaction suggested. June CPI and PPI cooled, but Thursday’s retail sales, jobless claims and Philadelphia Fed data showed activity and labor-market conditions holding up better than expected. Friday’s preliminary University of Michigan sentiment index rose to 54.4 from 49.5, while year-ahead inflation expectations eased to 4.2% from 4.6%. That combination helped gold stabilize, but it did not remove Fed-rate risk. September hike odds remained near 50%, the 2-year Treasury yield was above 4.17%, the 10-year yield was near 4.53% and DXY held near 100.73. The result was short covering in metals, not a clean macro reversal.
The Strait of Hormuz situation is best characterized as open but highly stressed transit under active military pressure, not a normalized shipping environment. Oil markets retained a war-risk premium after the U.S. and Iran exchanged strikes and shipping disruptions around the strait remained unresolved. WTI crude traded above $81 a barrel and Brent was near $86.70, both up sharply on the week. For gold, the impact remains two-sided: geopolitical risk supports defensive demand, but the oil rally keeps inflation risk alive, props up Fed-rate expectations and limits bullion’s upside. For broader markets, the Friday trade was oil bid, equities lower, yields still elevated, the dollar firm and silver dependent on whether short covering can extend into next week.
Traders are watching Fed communication, follow-through in September rate-hike pricing and any new disruption to Hormuz shipping lanes. A sustained move back above $4,000 would ease immediate downside pressure in gold, while another crude-oil spike would keep the inflation-rate channel in control.
The key outside markets see Nymex WTI crude oil prices firmer and trading above $81.00 a barrel, while Brent crude was near $86.70. The U.S. dollar index is firmer and trading near 100.73. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.53% area.
Technically, spot gold bears have the overall near-term technical advantage as prices remain below the $4,023.35 pivot area and continue to struggle after losing the $4,000 level. Bulls' next upside price objective is to push prices back above $4,023.35, with a sustained move targeting the 50-day moving average at $3,947.13 and then $4,053.95. Bears' next near-term downside price objective is a break below $3,969.00, with deeper downside targets at $3,950.80 and then $3,886.46. First resistance is seen at $4,008.70 and then at $4,023.35. First support is seen at $3,969.00 and then at $3,950.80.
Spot silver bears have the overall near-term technical advantage despite Friday’s rebound, as prices remain below the $59.44 to $58.53 retracement zone that has defined the latest short-term breakdown. Silver bulls' next upside price objective is to drive prices back above $58.53, with a move above that level targeting $59.44 and then $63.28. The next downside price objective for the bears is a break below $55.21, with deeper downside targets at $54.80 and then $53.42. First resistance is seen at $58.53 and then at $59.44. Next support is seen at $55.21 and then at $54.80.
