(Kitco NewsWire) - Spot gold and silver prices were sharply lower after the close on Wednesday, as a firmer U.S. dollar, post-Fed rate repricing and easing oil-supply fears outweighed residual haven demand tied to the U.S.-Iran situation. Silver took the brunt of the selling pressure. At the time of writing, spot gold was trading near $3,998.00 an ounce, down 2.73%, while spot silver was trading near $57.470, down 6.50% on the session.
The latest market reaction remains Fed-led. The Federal Reserve left the target range for the federal funds rate at 3.50% to 3.75% on June 17, but the statement kept the focus on elevated inflation and included a direct price-stability signal. The post-meeting positioning has leaned toward higher-for-longer policy, with the dollar holding firm, front-end rate risk still elevated and non-yielding assets losing momentum. Gold futures settled the session at their lowest level since November, while bitcoin and silver also weakened as the same rate-sensitive trade hit hard assets and crypto.
The Strait of Hormuz setup has shifted from outright closure risk to a fragile reopening trade. The waterway remains strategically central because it normally handles about one-fifth of global crude oil flows, but the latest shipping data point to limited transits resuming after the U.S.-Iran memorandum of understanding. That has reduced the immediate oil-supply shock premium and pulled Brent back toward the mid-$70s, easing some inflation fears. For gold, the result is a weaker haven impulse at the same time the dollar and Fed path are applying downside pressure.
Energy and cross-asset markets reflected that de-escalation trade. Brent crude fell 3.8% to $73.87 a barrel, while the 10-year Treasury yield fell to 4.41%. U.S. equities finished mixed, with the S&P 500 down 0.1%, the Nasdaq Composite down 0.4% and the Dow Jones Industrial Average up 0.4%. Jim Krane, energy research fellow at Rice University’s Baker Institute, said “Stocks are running low,” a reminder that lower crude prices are not the same as a fully normalized physical market.
The key outside markets see Nymex WTI crude oil prices lower and trading near the low-$70s a barrel, while Brent crude was near $73.87. The U.S. dollar index is firmer. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.4% area.
Technically, market analyst Muhammad Umair identified $3,950 to $4,000 as the key support zone for spot gold, with a failure there exposing $3,850. Bulls’ next upside price objective is to push prices back above the $4,350 resistance region, with a sustained move targeting $4,500. Bears’ next near-term downside price objective is a break below $3,950, with deeper downside targets at $3,850. First resistance is seen at $4,000 and then at $4,350. First support is seen at $3,950 and then at $3,850.
Spot silver bulls’ next upside price objective is to drive prices back above the $70.00 to $72.00 area, with a move above that zone targeting $78.60. The next downside price objective for the bears is a break below $55.00, with deeper downside targets in the $45.00 to $55.00 accumulation zone. First resistance is seen at $60.00 and then at $72.00. Next support is seen at $55.00 and then at $45.00.
