Spot gold and silver prices were firmer ahead of the North American market open Wednesday, as traders covered shorts near major support while a firmer U.S. dollar and higher Treasury yields kept the rebound contained before Thursday's June employment report. At the time of writing, spot gold was trading near $4,028.20 an ounce, up 0.54%, while spot silver was trading near $58.630, up 0.29% on the session. The positioning reflected market caution ahead of the June nonfarm payrolls report due Thursday at 8:30 a.m. ET before the July 3 market holiday.
Gold and Silver Trade Within Defined Ranges Wednesday
Gold's early range was $3,959.40 to $4,036.40, keeping the metal above the late-June breakdown zone but still below the $4,100 area. Silver's early range was $57.05 to $59.24, with the metal holding above its channel-floor support but still capped below $60.00.
June Nonfarm Payrolls Report Due Thursday 8:30 a.m. ET
Private payrolls rose 98,000 in June, ahead of the 92,500 forecast but below May's 122,000 gain. Broader consensus looks for the official payrolls report to slow toward the 100,000 to 115,000 area and for unemployment to edge up to 4.4%. Traders are watching May metropolitan employment data at 10:00 a.m. ET Wednesday, then Thursday's June Employment Situation report at 8:30 a.m. ET ahead of the July 3 U.S. market holiday, and the next inflation prints on July 14.
Strait of Hormuz Shipping Resumes After U.S.-Iran Interim Agreement
Shipping through the Strait of Hormuz waterway has resumed after the U.S.-Iran interim agreement, but Tehran is still pressing claims over approved routes, future passage fees and Revolutionary Guard instructions to ship operators. A foreign container ship ran aground Wednesday while using a route not approved by Iran. Oil prices were steadier after the June collapse, with Nymex WTI crude oil trading around $68.91 a barrel and Brent crude near $73.10.
Technical Levels for Spot Gold and Silver
Spot gold bulls' next upside price objective is to push prices back above the $4,044.00 to $4,100.00 resistance zone, with a sustained move targeting $4,200.00 and then $4,370.00. Bears' next near-term downside price objective is a break below $3,959.00, with deeper downside targets at $3,900.00 and then $3,886.00. First resistance is seen at $4,044.00 and then at $4,100.00. First support is seen at $3,959.00 and then at $3,900.00.
Spot silver bulls' next upside price objective is to drive prices back above the $58.83 to $60.41 area, with a move above that zone targeting $61.54 and then $64.25. The next downside price objective for the bears is a break below $57.13, with deeper downside targets at $56.50 and then $55.00. First resistance is seen at $58.83 and then at $60.41. Next support is seen at $57.13 and then at $56.50.
The U.S. dollar index was firmer Wednesday, while the yield on the benchmark 10-year U.S. Treasury note was trading near the 4.5% area.
FAQ
What were spot gold and silver prices at Wednesday's market open?
At the time of writing Wednesday, spot gold was trading near $4,028.20 an ounce, up 0.54%, while spot silver was trading near $58.630, up 0.29% on the session.
When is the June nonfarm payrolls report scheduled for release?
The June nonfarm payrolls report is due Thursday at 8:30 a.m. ET, ahead of the July 3 U.S. market holiday.
What happened to shipping through the Strait of Hormuz?
Shipping through the Strait of Hormuz waterway has resumed after the U.S.-Iran interim agreement, though Tehran is still pressing claims over approved routes and passage fees. A foreign container ship ran aground Wednesday while using a route not approved by Iran.
