Kitco NewsWire) - Spot gold prices are higher and spot silver prices are also sharply firmer after the close Monday, as a tentative U.S.-Iran agreement to reopen the Strait of Hormuz drove crude oil sharply lower, eased inflation fears and pulled Treasury yields down. At the time of writing, spot gold was trading near $4,330 an ounce, while spot silver was trading near $70.30 on the session.
The macro setup shifted from inflation shock to relief rally. Brent crude fell 4.8% to $83.17 a barrel, back near early-March levels, after the U.S. and Iran reached a tentative deal to extend their ceasefire and reopen the Strait of Hormuz. Treasury yields eased as lower oil reduced pressure on central banks to raise rates, with the 10-year yield slipping to 4.47% from 4.48% late Friday.
The Strait of Hormuz remains the main geopolitical transmission channel into gold, oil, rates and risk assets, but the latest U.S.-Iran setup is now being priced as de-escalation with execution risk rather than an active supply shock. The tentative deal would reopen the waterway and lift the U.S. naval blockade, but it does not settle Iran’s nuclear program, and follow-on negotiations are expected to run for 60 days.
For gold, the impact is mixed but constructive: lower oil reduces the inflation shock that had pushed yields against the metal, while weaker safe-haven demand caps the geopolitical bid. For equities and credit, the move is cleaner: lower crude supports margins, rate expectations and risk appetite. For oil, the first move is lower, but full normalization of Gulf flows is still a multi-month process.
U.S. equities rallied worldwide, led by technology and fuel-sensitive shares. The S&P 500 rose 122.83 points, or 1.7%, to 7,554.29. The Dow Jones Industrial Average rose 468.77 points, or 0.9%, to 51,671.03. The Nasdaq Composite jumped 795.10 points, or 3.1%, to 26,683.94. The Russell 2000 added 21.10 points, or 0.7%, to 2,965.09.
The key outside markets see Nymex WTI crude oil prices sharply lower, while Brent crude was near $83.17 a barrel. The U.S. dollar index is softer. The yield on the benchmark 10-year U.S. Treasury note is lower, with no approved live intraday DXY level included.
Technically, spot gold bulls’ next upside price objective is to push prices back above the $4,370 to $4,390 resistance zone, with a sustained move targeting $4,580 and then $4,600. Bears’ next near-term downside price objective is a break below $4,300, with deeper downside targets at $4,200 and then $4,180. First resistance is seen at $4,370 and then at $4,390. First support is seen at $4,300 and then at $4,200.
Spot silver bulls’ next upside price objective is to drive prices back above the $71.00 to $72.00 resistance zone, with a move above that zone targeting the 50-day moving average at $75.48 and then the $78.00 to $79.00 area. The next downside price objective for the bears is a break below $68.50, with deeper downside targets at $66.00 and then $65.00. First resistance is seen at $71.00 and then at $72.00. Next support is seen at $68.50 and then at $66.00.
| TIME | |||||
|---|---|---|---|---|---|
| Sydney | Tokyo | Ha Noi | HongKong | LonDon | NewYork |
| Prices By NTGOLD | ||
|---|---|---|
| We Sell | We Buy | |
| 37.5g ABC Luong Bar | ||
| 7,957.10 | 7,122.10 | |
| 1oz ABC Bullion Cast Bar | ||
| 6,667.40 | 5,877.40 | |
| 100g ABC Bullion Bar | ||
| 21,078.10 | 18,708.10 | |
| 1kg ABC Bullion Silver | ||
| 3,582.10 | 2,812.10 | |
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