(Kitco NewsWire) - Spot gold and silver prices are modestly higher in late-afternoon U.S. trading Friday, as crude oil pulled back from Thursday’s spike, Treasury yields eased and the U.S. dollar held near recent highs. At the time of writing, spot gold was trading near $4,052.70 an ounce, up 0.08%, while spot silver was trading near $58.16, up 0.87% on the session.
Gold’s session range was $4,021.20 to $4,083.10, leaving the metal above Thursday’s lows but below the $4,080 to $4,140 resistance region identified in the latest technical setup. Silver’s session range was $56.98 to $59.10, with the metal rebounding from Thursday’s selloff but still below the $59.23 to $60.76 resistance band.
North American equities closed mixed as the Dow recovered while technology shares remained under pressure. The S&P 500 rose 3.68 points, or less than 0.1%, to 7,411.98, the Dow Jones Industrial Average gained 235.60 points, or 0.5%, to 51,947.25, the Nasdaq Composite fell 161.87 points, or 0.6%, to 24,975.82 and the Russell 2000 lost 10.16 points, or 0.3%, to 2,930.00. In Canada, the S&P/TSX Composite rose 167.05 points, or 0.47%, to 35,359.71.
European equities closed higher as oil prices fell back below Thursday’s highs and earnings supported sentiment. The STOXX Europe 600 rose 5.24 points, or 0.82%, to 644.51, Germany’s DAX gained 335.88 points, or 1.36%, to 25,099.00, France’s CAC 40 added 73.19 points, or 0.88%, to 8,372.28 and London’s FTSE 100 climbed 97.06 points, or 0.91%, to 10,736.23.
Positioning after the latest economic data remains two-sided. U.S. business activity accelerated to an eight-month high in July, new home sales rose in June and Thursday’s jobless claims report showed initial claims at 187,000, reinforcing the view that layoffs remain historically low. The data have limited the dovish impact from earlier CPI and PPI softness, while oil volatility has kept inflation risk in the foreground. Markets still expect the Fed to hold next week, but surprise-hike risk has not disappeared. The 10-year Treasury yield eased to 4.678% after reaching an 18-month high, while DXY finished near 101.47. That leaves gold supported by lower yields on the day, but capped by a dollar that remains near the upper end of its recent range.
The Strait of Hormuz situation is best characterized as open but highly stressed transit under active military, shipping and diplomatic pressure, not a normalized operating environment. Brent crude fell to $96.78 after briefly trading above $102, while WTI settled near $89.31, as reports of renewed peace-talk efforts cooled part of the war premium. U.S. and Iranian forces remain engaged around the Gulf, and Houthi threats against Saudi-linked shipping have kept Red Sea and Gulf flows under pressure. For gold, the impact remains two-sided: geopolitical risk supports defensive demand, but any renewed oil spike would lift inflation expectations, push yields higher and limit bullion’s upside. For broader markets, Friday’s trade was oil lower, yields lower, the dollar steady, equities mixed and precious metals firmer.
Traders are watching next week’s Fed decision, Q2 GDP, the Fed’s preferred PCE inflation measure and any fresh disruption to Hormuz or Red Sea shipping lanes. A sustained move above $4,083.10 would improve gold’s short-term setup, while a break below $4,021.20 would return focus to Thursday’s support zone.
The key outside markets see Nymex WTI crude oil prices lower and trading near $89.31 a barrel, while Brent crude was near $96.78. The U.S. dollar index is steady near 101.47. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.68% area.
Technically, spot gold bulls have regained some near-term momentum after prices recovered from $4,021.20, but the market still needs to clear the breakout zone identified in the latest short-term setup. Bulls' next upside price objective is to push prices back above $4,080, with a sustained move targeting $4,140 and then $4,200. Bears' next near-term downside price objective is a break below $4,021.20, with deeper downside targets at $4,040’s failed-breakout region and then $3,965. First resistance is seen at $4,080 and then at $4,140. First support is seen at $4,021.20 and then at $3,965.
Spot silver bulls have improved the near-term technical setup after prices rebounded from $56.98 and moved back toward the 100-period moving average near $59.23. Silver bulls' next upside price objective is to drive prices back above $59.23, with a move above that level targeting $60.76 and then $63.24. The next downside price objective for the bears is a break below $56.98, with deeper downside targets at $56.39 and then $54.69. First resistance is seen at $59.23 and then at $60.76. Next support is seen at $56.98 and then at $56.39.
