(Kitco NewsWire) - Spot gold prices are steady and spot silver prices are weaker in early U.S. trading Friday, as oil prices fell sharply on U.S.-Iran deal hopes, U.S. equity futures edged higher and traders looked ahead to the next inflation-expectations read. At the time of writing, spot gold was trading near $4,210.10 an ounce, down 0.04%, while spot silver was trading at $67.025, down 0.49% on the session.
This week’s inflation data remains the main macro anchor for precious metals. The May CPI report showed headline inflation at 4.2% year over year, while the May PPI report showed producer prices rising 6.5% from a year earlier. The data kept the Fed-rate channel restrictive for gold and silver, but Friday’s oil selloff is easing part of the energy-inflation pressure that dominated the midweek trade.
The latest U.S.-Iran setup is being priced as de-escalation risk rather than a new supply shock. President Donald Trump called off planned strikes against Iran and said a peace deal could reopen Hormuz as soon as this weekend, while Tehran said no final decision had been made. Brent crude briefly traded below $85 a barrel after starting overnight trade near $93, then stabilized near $87.50, leaving energy lower, Treasury yields softer and equity futures firmer.
Gold is not drawing a clean haven bid because the same headlines reducing conflict risk are also lowering oil-driven inflation expectations, while silver is caught between lower yields and weaker industrial-cycle signaling from crude.
U.S. equity futures pointed higher before the open, extending Thursday’s risk rebound after the S&P 500 rose 1.8%, the Dow Jones Industrial Average rose 1.9% and the Nasdaq Composite gained 2.5%. The recovery was tied to lower oil prices, lower Treasury yields and improved expectations that crude flows through the Gulf could normalize if a U.S.-Iran agreement is signed.
The key outside markets see Nymex WTI crude oil prices sharply lower and trading below $85 a barrel, while Brent crude was near $87.50. The U.S. dollar index is softer. The yield on the benchmark 10-year U.S. Treasury note is lower in early trade.
Technically, spot gold bulls’ next upside price objective is to push prices back above the $4,250.00 to $4,350.00 resistance zone, with a sustained move targeting $4,500.00 and then the $4,575.00 area. Bears’ next near-term downside price objective is a break below $4,104.00, with deeper downside targets at $4,000.00 and then $3,900.00. First resistance is seen at $4,194.00 and then at $4,250.00. First support is seen at $4,154.00 and then at $4,104.00.
Spot silver bulls’ next upside price objective is to drive prices back above the $68.53 to $72.00 resistance zone, with a move above that zone targeting $72.47 and then $80.00. The next downside price objective for the bears is a break below $66.09, with deeper downside targets at $62.15 and then the $60.00 to $50.00 long-term buy zone. First resistance is seen at $68.53 and then at $72.00. Next support is seen at $66.09 and then at $62.15.
