(Kitco NewsWire) - Spot gold and silver prices are sharply lower in late-afternoon U.S. trading Thursday, as rising Treasury yields, a firmer U.S. dollar and a renewed crude-oil spike outweighed safe-haven demand tied to the U.S.-Iran conflict. At the time of writing, spot gold was trading near $4,047.80 an ounce, down 1.98%, while spot silver was trading near $57.64, down 3.46% on the session.
Gold’s session range was $4,039.40 to $4,141.70, leaving the metal below the $4,100 area and near the lower end of its daily range after failing at trendline resistance. Silver’s session range was $57.21 to $60.95, with the metal failing to hold above $60.75 and retreating toward the $58.73 support area identified in the latest technical setup.
North American equities closed sharply lower as mega-cap technology weakness, higher oil prices and rising Treasury yields hit risk appetite. The S&P 500 fell 90.66 points, or 1.2%, to 7,408.30, the Nasdaq Composite lost 553.21 points, or 2.2%, to 25,137.69, the Dow Jones Industrial Average declined 506.93 points, or 1.0%, to 51,711.65 and the Russell 2000 fell 19.78 points, or 0.7%, to 2,940.16. In Canada, the S&P/TSX Composite was down 0.21% near 35,340.15.
European equities also closed lower as technology and consumer shares sold off. The STOXX Europe 600 fell 7.66 points, or 1.18%, to 639.27. Germany’s DAX dropped 0.8%, France’s CAC 40 fell 0.9% and London’s FTSE 100 lost 0.4%, while Italy’s FTSE MIB fell 1.4% as semiconductor weakness spread across the region.
Positioning after the latest economic data remains less dovish than the softer CPI and PPI prints initially suggested. The ECB left rates unchanged at 2.25%, but officials kept the focus on energy-driven inflation risk, while U.S. initial jobless claims fell by 22,000 to 187,000, the lowest level since September 1969, reinforcing the view that layoffs remain historically low even as hiring momentum has cooled. The data leave markets treating next week’s Fed decision as a likely hold, but not a dovish pivot, with later-year hike risk still supported by resilient labor data and higher oil. The 10-year Treasury yield traded near the 4.7% area, and the dollar stayed firm as traders priced a higher inflation-risk premium into the curve.
The Strait of Hormuz situation is best characterized as open but highly stressed transit under active military and shipping pressure, not a normalized operating environment. Brent crude traded above $100 during the session after attacks on Saudi oil tankers in the Red Sea and renewed fighting linked to Iran-backed forces widened the energy-security shock beyond Hormuz. For gold, the impact remains two-sided: geopolitical risk supports defensive demand, but the oil spike is lifting inflation expectations, pushing yields higher and reducing the appeal of non-yielding bullion. For broader markets, the Thursday trade was oil bid, bonds under pressure, dollar firm, equities lower and silver underperforming gold.
Traders are watching Fed communication before next week’s July 29 policy decision, follow-through in jobless claims, Friday’s U.S. flash PMI data, and any fresh disruption to Hormuz or Red Sea shipping lanes. A sustained move below $4,039.40 would put gold’s short-term recovery at risk, while a close back above $4,075 would ease immediate downside pressure.
The key outside markets see Nymex WTI crude oil prices sharply higher and trading near the $92.00 area, while Brent crude traded above $100.00. The U.S. dollar index is firmer. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.7% area.
Technically, spot gold bulls have lost near-term momentum as prices slipped below the 100-period moving average at $4,083 and failed to clear descending trendline resistance at $4,148. Bulls' next upside price objective is to push prices back above $4,148, with a sustained move targeting $4,200 and then $4,246. Bears' next near-term downside price objective is a break below $4,039.40, with deeper downside targets at $4,020 and then $3,957. First resistance is seen at $4,075 and then at $4,148. First support is seen at $4,039.40 and then at $4,020.
Spot silver bulls have lost near-term momentum after prices failed to hold above the $60.75 breakout level and pulled back toward the 50-period moving average at $58.50 and the 100-period moving average at $58.34. Silver bulls' next upside price objective is to drive prices back above $60.75, with a move above that level targeting $61.88 and then $63.18. The next downside price objective for the bears is a break below $58.73, with deeper downside targets at $57.47 and then $56.12. First resistance is seen at $60.75 and then at $61.88. Next support is seen at $58.73 and then at $57.47.
