Gold, silver slide as stronger U.S. data, firmer yields pressure metals
Spot gold prices are sharply lower and spot silver prices are also weaker late Monday, as firmer Treasury yields, a stronger U.S. dollar and another oil-price spike pressured metals despite still-elevated geopolitical risk. At the time of writing, spot gold was trading near $4,513.70 an ounce, down 2.16%, while spot silver was trading at $72.570, down 3.53% on the session. Kitco’s spot page showed gold’s intraday range at $4,502.40 to $4,630.70 and silver’s at $72.10 to $76.12.
The U.S. data flow leaned firmer rather than gold-supportive. March factory orders rose 1.5% to $630.4 billion, the Census Bureau said Monday, following a 0.3% February increase. Shipments rose 1.4% to $633.9 billion, while inventories rose 0.6% to $956.3 billion. The factory-orders print also beat the 0.5% consensus, reducing the immediate case for rate-cut repricing.
The broader manufacturing backdrop was already less friendly for bullion after Friday’s ISM release. ISM said April manufacturing activity in the U.S. expanded for a fourth consecutive month, with the manufacturing PMI at 52.7%.
Policy-sensitive markets did most of the damage. The 10-year Treasury yield was trading near 4.44%, up about 6.5 basis points on the day, with an intraday range of 4.377% to 4.467%. The U.S. dollar index was firmer at 98.472, up 0.32%.
The key outside markets see Nymex WTI crude oil prices higher and trading around $104.88 a barrel, while Brent crude was near $113.56 a barrel. Brent rose 5.8% to $114.44 as Middle East fighting flared, with the Strait of Hormuz risk again feeding inflation concerns and pushing yields higher.
Traders are watching the next U.S. labor-market prints and Fed communications for confirmation that higher oil is delaying, rather than canceling, the next easing cycle. The minutes of the April 28-29 FOMC meeting are due May 20 at 2 p.m. ET, while the Fed’s Senior Loan Officer Opinion Survey is listed for May 4 at 2 p.m. ET.
Technically, spot gold bulls’ next upside price objective is to push prices back above the $4,530 to $4,568 resistance zone, with a sustained move targeting $4,615 and then $4,630.70. Bears’ next near-term downside price objective is a break below $4,502.40, with deeper downside targets at $4,485 and then $4,450. First resistance is seen at $4,530 and then $4,568. First support is seen at $4,502.40 and then $4,485.
Spot silver bulls’ next upside price objective is to drive prices back above the $73.00 to $73.50 area, with a move above that zone targeting $75.00 and then $76.12. The next downside price objective for the bears is a break below $72.10, with deeper downside targets at $71.00 and then $70.00. First resistance is seen at $72.82 and then $73.50. Next support is seen at $72.10 and then $71.00.
