(Kitco NewsWire) – Spot gold prices are lower and spot silver prices are sharply weaker after the close Thursday, as the U.S. dollar tested yearly highs and traders continued to reprice the Federal Reserve’s higher-for-longer signal after Wednesday’s policy meeting. At the time of writing, spot gold was trading near $4,214.20 an ounce, down 1.00%, while spot silver was trading at $65.795, down 3.14% on the session.
U.S. stocks closed higher Thursday, reversing part of Wednesday’s post-Fed decline. The S&P 500 rose 1.1% to 7,500.58, the Nasdaq Composite gained 1.9% to 26,517.93 and the Dow Jones Industrial Average added 0.1% to 51,564.70. The Russell 2000 climbed 2.1% to 2,979.77.
The Fed kept the target range for the federal funds rate unchanged at 3.50% to 3.75% in a unanimous vote, but the statement and projections kept rate-hike risk alive. The statement said inflation remains elevated relative to the 2% goal and partly reflects supply shocks in sectors including energy. The updated projections showed a 3.8% median 2026 fed-funds rate, implying the Committee is not rushing back toward cuts.
Market reaction after the Fed meeting remains rate- and dollar-led. The immediate post-meeting selloff reflected a more hawkish policy path than traders had expected, but Thursday’s equity rebound showed investors treating lower oil as a macro offset to tighter Fed messaging. For metals, positioning is more fragile: gold failed to hold above $4,300 and silver lost the $66 area as the U.S. dollar’s rally tightened financial conditions and pressured non-yielding assets. The front-end rate repricing is still the cleaner driver than growth fear, leaving short-covering dependent on a softer dollar or a reversal in Treasury yields.
The Strait of Hormuz remains the main geopolitical transmission channel into gold, oil, rates and risk assets, but the latest U.S.-Iran setup is being priced as reopening risk rather than active supply shock. The interim agreement signed Wednesday includes an immediate restart of commercial traffic through the strait and a 60-day toll-free access period, while the U.S. is expected to start lifting its naval blockade immediately and fully end it within 30 days. Traffic normalization is still incomplete, with verified crossings still at historic lows as of June 17. The current market impact is disinflationary and risk-supportive: oil is near its lowest levels since the war began, gasoline has fallen below $4 a gallon, equities rebounded and gold’s safe-haven bid has faded as the market’s focus shifted back to the dollar and real-rate channel.
The key outside markets see Nymex WTI crude oil prices lower and trading near the mid-$70s, while Brent crude was below $80 a barrel. The U.S. dollar index is firmer. The yield on the benchmark 10-year U.S. Treasury note is higher, with no approved live intraday level included.
Technically, spot gold bulls’ next upside price objective is to push prices back above the $4,300 to $4,320 resistance zone, with a sustained move targeting $4,370 and then $4,390. Bears’ next near-term downside price objective is a break below the $4,180 to $4,200 support zone, with deeper downside targets at $4,020 and then $4,000. First resistance is seen at $4,300 and then at $4,320. First support is seen at $4,200 and then at $4,180.
Spot silver bulls’ next upside price objective is to drive prices back above the $65.00 to $66.00 resistance zone, with a move above that zone targeting $72.00 and then the 50-day moving average at $75.11. The next downside price objective for the bears is a break below $65.00, with deeper downside targets at $62.00 and then $61.00. First resistance is seen at $66.00 and then at $72.00. Next support is seen at $65.00 and then at $62.00.
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