Spot gold traded near $4,033.20 an ounce, up 0.44%, and spot silver traded near $58.960, up 1.34%, ahead of the North American market open Tuesday, as silver led a modest precious-metals rebound. The dollar and Treasury yields remained firm enough to cap gold's upside, with DXY near 101.37 and the 10-year Treasury yield near 4.394% at 8:30 a.m. ET. The post-Fed reaction remains the main positioning constraint, as the FOMC held the target range at 3.50% to 3.75% on June 17 in a 12-0 vote while citing elevated uncertainty tied partly to the Middle East conflict and inflation pressure partly tied to energy supply shocks.
Gold's early range was $3,944.00 to $4,038.10, keeping the metal above the $4,000 level but below the resistance zone that would signal a cleaner technical recovery. Silver's early range was wider, at $56.520 to $59.710, with the market recovering from Monday's pressure but still below the $60.00 area.
FOMC Holds Rates at 3.50%-3.75% on June 17
The FOMC held the target range at 3.50% to 3.75% on June 17 in a 12-0 vote. The statement cited elevated uncertainty tied partly to the Middle East conflict and inflation pressure partly tied to energy supply shocks. The market has since treated gold less like a pure haven and more like a rate-sensitive asset. DXY was firmer near 101.37 at 8:19 a.m. ET and the 10-year Treasury yield was near 4.394% at 8:30 a.m. ET.
Strait of Hormuz Shipments Resume After June 17 U.S.-Iran Deal
Shipments through the Strait of Hormuz resumed faster than many analysts expected after the June 17 U.S.-Iran deal. Oil volumes leaving the waterway reached 13.4 million barrels on June 24 and 11.7 million barrels on June 25. Traffic then pulled back after fresh hostilities and a commercial tanker incident, while Iran described the situation as "sensitive and complex." WTI and Brent were firmer in early trade but remained below the panic levels seen earlier in June. Nymex WTI crude oil traded around $71.28 a barrel, while Brent crude was near $74.53.
May JOLTS and June Employment Data Scheduled This Week
Traders are watching May JOLTS at 10:00 a.m. ET, Wednesday's ADP employment report at 8:15 a.m. ET and Fed Chair Kevin Warsh's appearance at 9:30 a.m. ET, and Thursday's June employment report at 8:30 a.m. ET. The shortened U.S. holiday week raises the risk that payrolls, yields and dollar positioning land with thinner liquidity than usual.
Spot Gold Trading Range $3,944.00 to $4,038.10
Spot gold bulls' next upside price objective is to push prices back above the $4,091.00 to $4,201.00 resistance zone, with a sustained move targeting $4,324.00 and then $4,597.00. Bears' next near-term downside price objective is a break below $3,959.00, with deeper downside targets at $3,944.00 and then $3,900.00. First resistance is seen at $4,091.00 and then at $4,201.00. First support is seen at $3,959.00 and then at $3,944.00.
Spot silver bulls' next upside price objective is to drive prices back above the $61.54 to $64.25 area, with a move above that zone targeting $69.85 and then $72.00. The next downside price objective for the bears is a break below $57.72, with deeper downside targets at $55.58 and then $55.00. First resistance is seen at $61.54 and then at $64.25. Next support is seen at $57.72 and then at $55.58.
FAQ
What drove spot silver prices higher on Tuesday?
Spot silver traded near $58.960, up 1.34%, ahead of the North American market open Tuesday. Silver led a modest precious-metals rebound, with the market recovering from Monday's pressure. Silver's early range was $56.520 to $59.710, though the metal remained below the $60.00 area.
How did the Strait of Hormuz situation affect oil prices?
Shipments through the Strait of Hormuz resumed after the June 17 U.S.-Iran deal, with oil volumes leaving the waterway at 13.4 million barrels on June 24 and 11.7 million barrels on June 25. Traffic then pulled back after fresh hostilities and a commercial tanker incident. WTI and Brent were firmer in early trade but remained below the panic levels seen earlier in June, with Nymex WTI trading around $71.28 a barrel and Brent near $74.53.
