Spot gold and silver posted gains in late-afternoon U.S. trading Wednesday, with gold trading near $4,136.60 an ounce, up 1.47%, and silver near $59.72, up 1.80%. Technical buying and defensive demand lifted metals despite higher crude oil prices, firmer Treasury yields, and a choppy U.S. equity session. Gold's session range was $4,075.90 to $4,167.00, testing the $4,140 to $4,200 resistance region, while silver's range was $58.61 to $61.03, holding above the 100-period moving average near $59.23. The gains came as geopolitical risk from Strait of Hormuz tensions and mixed U.S. economic data left Fed rate expectations two-sided, with softer June inflation prints offset by stronger retail sales, lower jobless claims, and a sharp Philadelphia Fed manufacturing rebound.
North American and European Equity Markets Close Mixed
North American equities closed mixed to lower as the oil spike, rising Treasury yields, and AI-stock volatility offset stronger earnings in parts of the market. The S&P 500 rose 10.24 points, or 0.1%, to 7,498.96, while the Nasdaq Composite fell 146.30 points, or 0.6%, to 25,690.90. The Dow Jones Industrial Average slipped 6.06 points, or less than 0.1%, to 52,218.58, and the Russell 2000 fell 27.46 points, or 0.9%, to 2,959.94. In Canada, the S&P/TSX Composite rallied 116.03 points, or 0.33%, to 35,485.11, led by gold, materials, and energy shares.
European equities finished higher, helped by corporate earnings and a softer U.K. inflation print. The STOXX Europe 600 rose 3.74 points, or 0.58%, to 646.93, Germany's DAX gained 144.06 points, or 0.58%, to 25,155.41, France's CAC 40 rose 79.22 points, or 0.95%, to 8,442.36, and London's FTSE 100 climbed 131.06 points, or 1.24%, to 10,716.97.
Strait of Hormuz Tensions Drive Oil to Multi-Week Highs
U.S. officials warned Asian leaders that Iran's push to control or charge tolls through the Strait of Hormuz would threaten global commerce, while oil markets continued to price supply risk after repeated attacks around the waterway and broader Houthi threats to Red Sea and Gulf flows. Brent crude settled at $94.07, its highest close since June 8, while WTI rose to $86.83. The 10-year Treasury yield rose to about 4.66% from 4.63% Tuesday, while the U.S. dollar index held near 101.
Positioning after the latest economic data remains two-sided. Softer June CPI and PPI reports reduced pressure for an immediate Fed hike, but stronger retail sales, lower jobless claims, a sharp Philadelphia Fed manufacturing rebound, and firmer consumer sentiment have prevented traders from pricing a clean dovish pivot. There were no major U.S. macro releases Wednesday, leaving rate expectations tied to Fed communication, oil, and next week's policy meeting.
Gold and Silver Technical Outlook Shows Bullish Breakout
Spot gold bulls have regained the near-term technical advantage after prices broke above triangle resistance and moved above the 50-period moving average at $4,049 and the 100-period moving average at $4,076. Bulls' next upside price objective is to push prices back above $4,167.00, with a sustained move targeting $4,200 and then $4,278. Bears' next near-term downside price objective is a break below $4,080, with deeper downside targets at $4,050 and then $4,040. First resistance is seen at $4,167.00 and then at $4,200. First support is seen at $4,080 and then at $4,050.
Spot silver bulls have regained the near-term technical advantage after prices cleared descending trendline resistance and moved above the 50-period moving average near $57.97 and the 100-period moving average near $59.23. Silver bulls' next upside price objective is to drive prices back above $61.03, with a move above that level targeting $63.24 and then $65.15. The next downside price objective for the bears is a break below $59.23, with deeper downside targets at $58.26 and then $56.39. First resistance is seen at $61.03 and then at $63.24. Next support is seen at $59.23 and then at $58.26.
Traders are watching Fed communication, Friday's U.S. flash PMI data, next week's Fed policy decision, and any fresh disruption to Hormuz or Red Sea shipping lanes. A sustained hold above $4,140 would keep the short-term gold recovery intact, while a break back below $4,080 would weaken the breakout and shift attention back to the $4,050 to $4,040 support area.
FAQ
What drove gold and silver prices higher Wednesday?
Technical buying and defensive demand lifted gold to $4,136.60 (+1.47%) and silver to $59.72 (+1.80%) despite higher crude oil prices and firmer Treasury yields. Gold broke above triangle resistance and the 50-period and 100-period moving averages, while silver cleared descending trendline resistance.
Why did oil prices reach multi-week highs?
Brent crude settled at $94.07, its highest close since June 8, and WTI rose to $86.83 after U.S. officials warned Asian leaders about Iran's push to control or charge tolls through the Strait of Hormuz. Oil markets priced supply risk from repeated attacks around the waterway and Houthi threats to Red Sea and Gulf flows.
What are traders watching for gold's next move?
Traders are watching Fed communication, Friday's U.S. flash PMI data, next week's Fed policy decision, and any fresh disruption to Hormuz or Red Sea shipping lanes. A sustained hold above $4,140 would keep the short-term gold recovery intact, while a break below $4,080 would weaken the breakout.
