(Kitco NewsWire) - Spot gold prices are near steady and spot silver prices are sharply higher in late-afternoon U.S. trading Thursday, as rising crude oil prices and a rebound in Treasury yields hit equities but failed to fully unwind Wednesday’s precious-metals breakout. At the time of writing, spot gold was trading near $4,516.60 an ounce, down 0.12%, while spot silver was trading at $67.960, up 1.60% on the session.
North American equity markets closed lower as the bond-market relief from Wednesday’s Treasury buyback plan faded. The S&P 500 fell 66.82 points, or 0.9%, to 7,641.16, the Dow Jones Industrial Average dropped 703.84 points, or 1.3%, to 52,759.21, the Nasdaq Composite lost 263.92 points, or 1.0%, to 26,067.17, and the Russell 2000 fell 40.51 points, or 1.3%, to 2,992.43. European markets finished mixed to weaker, with the STOXX Europe 600 down 0.12% to 650.35, Germany’s DAX down 0.42% to 25,983.04 and France’s CAC 40 down 0.57% to 8,453.09. London’s FTSE 100 rose 0.04% to 10,748.16, while Italy’s FTSE MIB gained 0.09% to 52,665.82.
The latest positioning remains defined by a collision between stronger U.S. data and persistent bond-market stress. Initial jobless claims fell to 206,000 for the week ended Aug. 15, below expectations for 210,000, while continuing claims rose to just under 1.8 million. The Philadelphia Fed manufacturing index rose to 47.4 in August from 41.4 in July, far above expectations and reinforcing the message that regional factory activity remains firm. The data came one day after Fed minutes showed deeper concern about inflation, with several officials favoring a rate hike and a 9-3 vote to hold the target range at 3.50% to 3.75%. The 10-year Treasury yield rose back near 4.69% and the 30-year yield climbed to about 5.23%, leaving gold supported by geopolitical and dollar-weakness demand but capped by the return of long-end yield pressure. Traders now turn to Friday’s flash PMI readings for confirmation on whether activity is strong enough to keep the Fed’s September decision live.
Silver was the standout in precious metals. The metal held above the $66.55 breakout level identified in the latest technical setup, traded to an intraday high of $69.11 and extended its advance even as gold stalled near the $4,500 area. Gold remains above the former $4,447 resistance level, now a key support reference, but the pullback from the $4,541.70 intraday high shows buyers are still sensitive to rising yields. The split leaves silver with the stronger near-term momentum profile, while gold is trading more directly off the rates channel.
The Strait of Hormuz remains the main geopolitical channel into oil, inflation expectations and defensive demand. Washington is preparing new economic-isolation measures against Iran, while U.S.-Iran talks remain stalled and the market continues to price uncertainty around when tankers will be able to freely exit the Persian Gulf. WTI crude settled higher for a fifth straight session, and Brent crude rose above $93 a barrel as the supply-risk premium rebuilt. For gold, the impact remains two-sided: Hormuz risk supports safe-haven demand and keeps silver’s momentum bid intact, while higher oil feeds inflation concerns, lifts long-end yields and limits the upside in non-yielding metals.
The key outside markets see Nymex WTI crude oil prices firmer and trading around $87.83 a barrel, while Brent crude was near $93.78. The U.S. dollar index is softer. 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 $4,595.00 resistance level, with a sustained move targeting $4,778.00. Bears' next near-term downside price objective is a break below $4,447.00, with deeper downside targets at $4,320.00 and then $4,228.00. First resistance is seen at $4,595.00 and then at $4,778.00. First support is seen at $4,447.00 and then at $4,320.00.
Spot silver bulls' next upside price objective is to drive prices back above $68.02, with a move above that level targeting $69.48. The next downside price objective for the bears is a break below $66.55, with deeper downside targets at $64.20 and then $62.75. First resistance is seen at $68.02 and then at $69.48. Next support is seen at $66.55 and then at $64.20.
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