Gold and Silver Prices Rise Amid U.S.-Iran Tensions
Gold and silver prices saw a significant increase late Thursday, driven by a heightened demand for safe-haven assets amid ongoing risks involving the U.S. and Iran. Meanwhile, oil prices experienced a late pullback after signals of potential deals emerged. At the time of writing, spot gold prices were up 3.54%, trading around $4,214.40 an ounce, while spot silver jumped 6.20% to approximately $67.22.
In May, U.S. producer prices marked a 1.1% monthly increase and a 6.5% yearly rise, with final demand energy prices jumping 10.7% year-on-year. However, new jobless claims for the week ending June 6 climbed to 229,000, up from 225,000 the week before. This mixed data kept inflation concerns at the forefront for metals traders, particularly after yields fell late in the session, offering gold some relief following an earlier decline.
The Strait of Hormuz remained a focal point during the trading session. Iran’s Supreme Joint Forces Command announced a closure of the strait to oil tankers and commercial vessels. However, the U.S. military reported that commercial navigation continued without any attacks on American warships. Initially, Brent crude prices climbed to $95.40 per barrel, and WTI rose to $92.63 per barrel following a U.S. attack on Iranian targets and Iran’s announcement to obstruct oil exports. Prices reversed course after President Trump called off a planned military strike and mentioned progress in negotiations, leading markets to factor in the possibility of both disruptions and de-escalation.
In the broader market, Nymex WTI crude futures struggled, aiming to settle below $87.00 per barrel, while Brent crude tested the $90.00 mark. Late trading saw the U.S. dollar index weaken, and the benchmark 10-year Treasury yield hovered around 4.5%.
On a technical front, gold bulls are eyeing a push above the $4,100.00 mark as a key milestone, aiming for a sustained move toward the $4,180.00 to $4,200.00 resistance zone. The bears are looking for a drop below the support level of $4,000.00 to $4,020.00, with deeper targets set at $3,880.00 to $3,900.00, and further down at $3,500.00. The immediate resistance levels are identified at $4,100.00 and within the $4,180.00 to $4,200.00 range, while support levels are seen between $4,000.00 and $4,020.00, followed by $3,880.00 and $3,900.00.
For silver, the next target for bulls is to reclaim the $65.00 to $66.00 range, with aspirations for an upward movement towards $71.00 to $72.00. In contrast, the next downside targets for the bears are below $61.00 and then $60.00, with deeper objectives at $57.00 and $50.00. Initial resistance waves are observed at $65.00 to $66.00, followed by the $71.00 to $72.00 zone, while support is anticipated at $61.00 and then $60.00.
