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Gold steadies as claims beat, Hormuz talks trim haven bid - Kitco AM Report

Gold steadies as claims beat, Hormuz talks trim haven bid - Kitco AM Report

KitcoKitco2026/08/06 13:42
By:Kitco

(Kitco NewsWire) - Spot gold prices are firmer but spot silver prices are weaker in early U.S. trading Thursday, as softer labor-market momentum and lower Treasury yields offset a firmer U.S. dollar and a reduced geopolitical premium tied to Strait of Hormuz negotiations. At the time of writing, spot gold was trading near $4,252.60 an ounce, up 0.15%, while spot silver was trading at $61.390, down 0.86% on the session.

The market is still working through last week’s Federal Reserve decision, when the FOMC held the federal funds target range at 3.50% to 3.75% in a 9-3 vote, with three policymakers favoring a 25-basis-point hike. The statement kept inflation risk at the center of the policy debate, citing energy-linked supply shocks, while the post-meeting setup left traders focused on whether softer incoming labor data can blunt September hike pricing. Fed-funds futures still imply a September hike is more likely than a hold, but the probability has eased from last week’s levels as crude retreated and private hiring slowed.

The latest data mix is narrowing, not eliminating, the Fed’s inflation problem. July ADP private payrolls rose 44,000, down from 95,000 in June, while annual pay growth remained at 4.4%. July ISM services held expansion territory at 54.1, with business activity at 59.1 and new orders at 57.2, but the employment component fell into contraction at 47.4 and the prices-paid index rose to 70.3. Initial jobless claims rose only 1,000 to 199,000 for the week ended Aug. 1, below expectations near 205,000, a reading that limited the dovish impact of Wednesday’s weaker private-payrolls print.

Naeem Aslam, chief investment officer at Zaye Capital Markets, said the data mix still matters for bullion because weaker hiring raises growth uncertainty while sticky services inflation makes it harder for the Fed to declare victory. He said the “$4,250 area” remains an important reference point as traders reassess employment, inflation, energy prices and future monetary policy. In that framework, a cleaner break below $4,250 would signal that easing Hormuz risk and a firmer dollar are dominating, while a sustained hold above that zone would keep the focus on weaker labor momentum and lower real-yield pressure.

The Strait of Hormuz remains a live macro shock, but the immediate market impact has shifted from panic premium to conditional relief. Iran says an agreement with Oman over the waterway is in the final drafting stage, with any deal likely tied to the U.S. lifting its blockade on Iranian ports. The strait handled roughly one-fifth of global oil and natural gas trade before the war, and recent shipping data showed weekly transits rising to 84 from 45, still far below the more than 700 typical before the crisis. A confirmed reopening could remove part of gold’s immediate geopolitical premium, but lower energy prices would also weaken inflation expectations, reduce Treasury-yield pressure and support the case for easier Fed policy later.

Yen intervention is adding a second currency-market layer to the gold trade. The coordinated U.S.-Japan effort to support the yen has curbed one-way dollar-yen momentum and briefly softened the greenback broadly, which helped gold during the midweek rally. It has also made global FX positioning more sensitive to official-sector signals, since traders now have to price the risk of repeated yen-buying operations, possible Bank of Japan rate guidance and spillovers into U.S. Treasury markets. For gold, the channel is mostly dollar and yields: yen support that weakens the dollar or limits Treasury selling is gold-positive, while any intervention-driven rise in U.S. yields would work against non-yielding metals.

Traders are watching Friday’s July nonfarm payrolls report at 8:30 a.m. ET for the next policy reset. A soft payrolls print paired with benign wages would reinforce the pullback in hike expectations; a hotter wage or employment print would put the Fed’s 3.75% to 4.00% September scenario back in sharper focus.

The key outside markets see Nymex WTI crude oil prices firmer and trading around $75.85 a barrel, while Brent crude was near $80.23. The U.S. dollar index is firmer. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.6% area.

Technically, spot gold bulls’ next upside price objective is to push prices back above the $4,305.00 to $4,330.00 resistance zone, with a sustained move targeting $4,500.00 and then $5,000.00. Bears’ next near-term downside price objective is a break below $4,237.00, with deeper downside targets at $4,196.00 and then $4,162.00. First resistance is seen at $4,305.00 and then at $4,330.00. First support is seen at $4,237.00 and then at $4,196.00.

Spot silver bulls’ next upside price objective is to drive prices back above the $62.92 area, with a move above that zone targeting $64.00 and then $65.00. The next downside price objective for the bears is a break below $61.42, with deeper downside targets at $60.49 and then $59.75. First resistance is seen at $62.92 and then at $64.00. Next support is seen at $61.42 and then at $60.49.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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