(Kitco NewsWire) - Spot gold and silver prices are sharply lower in late-afternoon U.S. trading Tuesday, as elevated global bond yields and a renewed selloff in AI-linked equities outweighed support from a softer U.S. dollar and lingering Strait of Hormuz risk. At the time of writing, spot gold was trading near $4,338.10 an ounce, down 1.76%, while spot silver was trading at $63.370, down 3.49% on the session.
North American equity markets closed lower, led by technology and semiconductor weakness. The S&P 500 fell 48.42 points, or 0.63%, to 7,696.64, the Dow Jones Industrial Average lost 87.51 points, or 0.16%, to 53,372.27, and the Nasdaq Composite dropped 355.20 points, or 1.33%, to 26,289.72. European markets also finished weaker, with the STOXX Europe 600 down 0.69% to 651.90, Germany’s DAX down 0.80% to 26,128.36, France’s CAC 40 down 0.82% to 8,509.36, Italy’s FTSE MIB down 1.06% to 53,017.84 and London’s FTSE 100 up 0.07% to 10,728.04.
The latest positioning remains a tug of war between softer U.S. data and a higher-for-longer rates impulse from oil and long-end yields. Last week’s weaker retail sales, softer CPI, flat headline PPI and weaker consumer sentiment reduced expectations for a September Fed hike, while Monday’s Empire State survey showed activity and prices paid improving. The 10-year Treasury yield edged lower to about 4.71%, but remains well above prewar levels, while the 30-year yield stayed near its highest level since 2007. Markets are now focused on the Fed’s July meeting minutes Wednesday at 2 p.m. ET, jobless claims and the Philadelphia Fed index Thursday, and Friday’s flash PMI readings for confirmation that the Fed can stay on hold.
The Strait of Hormuz remains the main geopolitical channel into oil, inflation expectations and defensive demand, though Tuesday’s market impact was mixed. Washington said the strait is open and operating, while also saying the naval blockade remains in force and mines have been removed or detonated. Brent crude held near $91 a barrel as traders monitored whether the U.S. and Iran can reach a deal that allows tankers to exit the Persian Gulf freely again. For gold, the setup remains two-sided: geopolitical stress and a softer dollar support safe-haven demand, while higher crude keeps inflation risk alive and prevents a clean decline in Treasury yields.
The key outside markets see Nymex WTI crude oil prices firmer and trading around $84.98 a barrel, while Brent crude was near $91.24. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.7% area. The U.S. dollar index is softer. (Kitco Global Index shows how much of today's gold move is the dollar versus the gold market itself.)
Technically, spot gold bulls' next upside price objective is to push prices back above the $4,448.00 resistance level, with a sustained move targeting $4,518.00 and then $4,596.00. Bears' next near-term downside price objective is a break below $4,333.00, with deeper downside targets at $4,262.00 and then $4,205.00. First resistance is seen at $4,448.00 and then at $4,518.00. First support is seen at $4,333.00 and then at $4,262.00.
Spot silver bulls' next upside price objective is to drive prices back above $66.78, with a move above that level targeting $68.24 and then $69.63. The next downside price objective for the bears is a break below $63.57, with deeper downside targets at $62.20 and then $61.50. First resistance is seen at $66.78 and then at $68.24. Next support is seen at $63.57 and then at $62.20.
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