Gold firm, silver surges as oil rebound keeps inflation risk in focus
Spot gold prices are firmer and spot silver prices are sharply higher in early U.S. trading Monday, as renewed U.S.-Iran tensions lifted crude oil and kept inflation risk in focus ahead of this week’s U.S. data. At the time of writing, spot gold was trading near $4,727.20 an ounce, up 0.29%, while spot silver was trading at $85.010 an ounce, up 5.97% on the session.
The Monday U.S. calendar is light but not empty, with April existing home sales due at 10:00 a.m. ET. The larger macro risk sits Tuesday, when April CPI and core CPI are scheduled for 8:30 a.m. ET, with headline CPI expected at 0.6% month over month and 3.7% year over year and core CPI expected at 0.3% month over month and 2.7% year over year.
Oil regained ground after the latest U.S.-Iran peace push failed to reopen the Strait of Hormuz trade in a durable way. Brent crude traded near $104.32 a barrel, up about 3%, while Nymex WTI crude was near $98.40 a barrel, up 3.2%, after both contracts had dropped 6% last week on hopes for a deal.
The key outside markets see Nymex WTI crude oil prices higher and trading around $98.40 a barrel, while Brent crude was near $104.32. 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, spot gold bulls’ next upside price objective is to push prices back above the $4,632.97 level, with a sustained move targeting the $4,744.34 to $4,768.60 resistance area. Bears’ next near-term downside price objective is a break below $4,601.94, with deeper downside targets at $4,541.88 and then the $4,495.33 to $4,401.84 support zone. First resistance is seen at $4,744.34 and then at the 50-day moving average near $4,768.53. First support is seen at $4,632.97 and then at $4,601.94.
Spot silver bulls’ next upside price objective is to drive prices above the $82.13 to $83.61 resistance area, with a sustained move above that zone targeting $91.34. The next downside price objective for the bears is a break below the 50-day moving average at $76.94, with deeper downside targets at $74.63 and then the $72.03 to $69.43 retracement zone. First resistance is seen at $82.13 and then at $83.06. Next support is seen at $76.94 and then at $74.63.
