(Kitco NewsWire) - Spot gold and silver prices were sharply higher late Thursday, as safe-haven demand tied to U.S.-Iran risk met a late-session pullback in crude oil after fresh deal signals. At the time of writing, spot gold was trading near $4,214.40 an ounce, up 3.54%, while spot silver was trading at $67.220, up 6.20% on the session.
U.S. producer prices rose 1.1% in May and 6.5% from a year earlier, with final-demand energy up 10.7% on the month. Initial jobless claims rose to 229,000 in the week ended June 6 from 225,000 a week earlier. The data mix kept the inflation impulse in focus for metals traders, even as lower late-day yields offered some relief to gold after the morning selloff.
The Strait of Hormuz remained the session’s cross-asset pressure point. Iran’s top joint military command said the strait was closed to oil tankers and commercial ships, while the U.S. military said commercial ships continued to transit the waterway and no U.S. warships had been hit. Early in the session, Brent rose to $95.40 a barrel and WTI to $92.63 after U.S. strikes on Iranian targets and Iran’s closure claim. Later, crude reversed as President Donald Trump canceled planned strikes and said deal discussions had advanced, leaving markets to price both shipping disruption risk and de-escalation optionality. For gold, the net effect was a volatile haven bid rather than a clean breakout, while oil, rates, equities and the dollar traded as the more direct Hormuz shock absorbers.
The key outside markets see Nymex WTI crude oil prices under pressure and trying to settle below $87.00 a barrel, while Brent crude was testing the $90.00 area. The U.S. dollar index was softer late in the session. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.5% area.
Technically, spot gold bulls’ next upside price objective is to push prices back above the $4,100.00 level, with a sustained move targeting the $4,180.00 to $4,200.00 resistance zone. Bears’ next near-term downside price objective is a break below the $4,000.00 to $4,020.00 support zone, with deeper downside targets at $3,880.00 to $3,900.00 and then $3,500.00. First resistance is seen at $4,100.00 and then at $4,180.00 to $4,200.00. First support is seen at $4,000.00 to $4,020.00 and then at $3,880.00 to $3,900.00.
Spot silver bulls’ next upside price objective is to drive prices back above the $65.00 to $66.00 area, with a move above that zone targeting $71.00 to $72.00. The next downside price objective for the bears is a break below $61.00 and then $60.00, with deeper downside targets at $57.00 and then $50.00. First resistance is seen at $65.00 to $66.00 and then at $71.00 to $72.00. Next support is seen at $61.00 and then at $60.00.
