(Kitco NewsWire) - Spot gold and silver prices are higher in late-afternoon U.S. trading Wednesday, as technical buying and defensive demand lifted metals despite higher crude oil prices, firmer Treasury yields and a choppy U.S. equity session. At the time of writing, spot gold was trading near $4,136.60 an ounce, up 1.47%, while spot silver was trading near $59.72, up 1.80% on the session.
Gold’s session range was $4,075.90 to $4,167.00, leaving the metal above the $4,100 area and testing the $4,140 to $4,200 resistance region identified in the latest technical setup. Silver’s session range was $58.61 to $61.03, with the metal holding above the 100-period moving average near $59.23 and extending its breakout above the prior descending trendline.
North American equities closed mixed to lower as the oil spike, rising Treasury yields and AI-stock volatility offset stronger earnings in parts of the market. The S&P 500 rose 10.24 points, or 0.1%, to 7,498.96, while the Nasdaq Composite fell 146.30 points, or 0.6%, to 25,690.90. The Dow Jones Industrial Average slipped 6.06 points, or less than 0.1%, to 52,218.58, and the Russell 2000 fell 27.46 points, or 0.9%, to 2,959.94. In Canada, the S&P/TSX Composite rallied 116.03 points, or 0.33%, to 35,485.11, led by gold, materials and energy shares.
European equities finished higher, helped by corporate earnings and a softer U.K. inflation print. The STOXX Europe 600 rose 3.74 points, or 0.58%, to 646.93, Germany’s DAX gained 144.06 points, or 0.58%, to 25,155.41, France’s CAC 40 rose 79.22 points, or 0.95%, to 8,442.36 and London’s FTSE 100 climbed 131.06 points, or 1.24%, to 10,716.97.
Positioning after the latest economic data remains two-sided. Softer June CPI and PPI reports reduced pressure for an immediate Fed hike, but stronger retail sales, lower jobless claims, a sharp Philadelphia Fed manufacturing rebound and firmer consumer sentiment have prevented traders from pricing a clean dovish pivot. There were no major U.S. macro releases Wednesday, leaving rate expectations tied to Fed communication, oil and next week’s policy meeting. The 10-year Treasury yield rose to about 4.66% from 4.63% Tuesday, while the U.S. dollar index held near 101. That mix left gold bid on technical and defensive flows, but still vulnerable to any renewed rise in real yields.
The Strait of Hormuz situation is best characterized as open but highly stressed transit under active military and diplomatic pressure. U.S. officials warned Asian leaders that Iran’s push to control or charge tolls through the strait would threaten global commerce, while oil markets continued to price supply risk after repeated attacks around the waterway and broader Houthi threats to Red Sea and Gulf flows. Brent crude settled at $94.07, its highest close since June 8, while WTI rose to $86.83. For gold, the impact remains two-sided: geopolitical risk supports defensive demand, but higher oil prices reinforce inflation risk, lift yields and limit the upside for non-yielding bullion. For broader markets, the Wednesday trade was oil bid, yields higher, equities choppy and energy-linked Canadian shares outperforming.
Traders are watching Fed communication, Friday’s U.S. flash PMI data, next week’s Fed policy decision, and any fresh disruption to Hormuz or Red Sea shipping lanes. A sustained hold above $4,140 would keep the short-term gold recovery intact, while a break back below $4,080 would weaken the breakout and shift attention back to the $4,050 to $4,040 support area.
The key outside markets see Nymex WTI crude oil prices sharply higher and trading near $86.83 a barrel, while Brent crude was near $94.07. The U.S. dollar index is steady near 101.00. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.66% area.
Technically, spot gold bulls have regained the near-term technical advantage after prices broke above triangle resistance and moved above the 50-period moving average at $4,049 and the 100-period moving average at $4,076. Bulls' next upside price objective is to push prices back above $4,167.00, with a sustained move targeting $4,200 and then $4,278. Bears' next near-term downside price objective is a break below $4,080, with deeper downside targets at $4,050 and then $4,040. First resistance is seen at $4,167.00 and then at $4,200. First support is seen at $4,080 and then at $4,050.
Spot silver bulls have regained the near-term technical advantage after prices cleared descending trendline resistance and moved above the 50-period moving average near $57.97 and the 100-period moving average near $59.23. Silver bulls' next upside price objective is to drive prices back above $61.03, with a move above that level targeting $63.24 and then $65.15. The next downside price objective for the bears is a break below $59.23, with deeper downside targets at $58.26 and then $56.39. First resistance is seen at $61.03 and then at $63.24. Next support is seen at $59.23 and then at $58.26.
