(Kitco NewsWire) – Spot gold and silver prices are weaker in early U.S. trading Friday, as a firmer U.S. dollar and elevated oil prices offset safe-haven demand tied to the Strait of Hormuz and U.S.-Iran talks. At the time of writing, spot gold was trading near $4,522.00 an ounce, down 0.44%, while spot silver was trading at $75.800, down around 1.00% on the session.
The Strait of Hormuz remains the main energy-market transmission channel from the U.S.-Iran conflict into metals. Friday’s market impact is inflation-led rather than purely haven-led: Brent was near $104.44 a barrel and WTI near $97.44 as talks between Washington and Tehran dragged on, lifting oil-risk premia and reinforcing rate-pressure on gold. That leaves bullion caught between geopolitical bid support and higher energy-cost inflation, which has kept the dollar firmer and Treasury-market pressure elevated.
U.S. data risk is concentrated at 10 a.m. ET, when the final May University of Michigan consumer sentiment reading is due. The preliminary May reading was 48.2, down from 49.8 in April, with current conditions at 47.8 and expectations at 48.5. Fed Gov. Christopher Waller is also due to speak at 11 a.m. ET, with dollar traders focused on whether his remarks lean into rate-hike risk after the recent move higher in oil and inflation expectations.
Global equities were firmer before the U.S. open. S&P 500 futures and Nasdaq futures were up 0.2%, while Dow futures rose 0.3%. In Europe, the FTSE 100 gained 0.3%, the CAC 40 rose 0.4% and the DAX climbed 0.8%. In Asia, Japan’s Nikkei 225 rose 2.7% to 63,339.07, Hong Kong’s Hang Seng gained 0.9% to 25,606.03 and the Shanghai Composite added 0.9% to 4,112.90.
The key outside markets see Nymex WTI crude oil prices higher and trading around $97.44 a barrel, while Brent crude was near $104.44. The U.S. dollar index is firmer. The yield on the benchmark 10-year U.S. Treasury note was below its earlier-week highs but still in the mid-4% area.
Technically, spot gold bulls’ next upside price objective is to push prices back above the $4,538 to $4,546 resistance zone, with a sustained move targeting $4,573 and then $4,670. Bears’ next near-term downside price objective is a break below $4,490, with deeper downside targets at $4,453 and then $4,400. First resistance is seen at $4,538 and then at $4,546. First support is seen at $4,490 and then at $4,453.
Spot silver bulls’ next upside price objective is to drive prices back above the $76.00 to $76.50 area, with a move above that zone targeting $78.00 and then $79.00. The next downside price objective for the bears is a break below $75.00, with deeper downside targets at $74.68 and then $74.00. First resistance is seen at $76.00 and then at $76.50. Next support is seen at $75.00 and then at $74.68.
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