Gold prices fell while silver prices plummeted in the first trading session of Tuesday in the US as the USD strengthened and oil prices fluctuated again, overshadowing the supportive impact from the cooling of US bond yields.
At the time of recording, spot gold prices decreased by 1.31% to about 4,511.78 USD/ounce. Meanwhile, spot silver prices lost sharply by 2.64%, falling to 76.07 USD/ounce.
After the federal holiday in the US (Memorial Day), the market is turning its attention to a series of important US economic data this week. Investors will be watching the S&P/Case-Shiller house price index for March released at 9 pm Vietnam time, along with consumer confidence data for May released an hour later.
In addition, the market is also awaiting the Richmond Fed's manufacturing report on Wednesday along with a series of data on personal income, consumer spending and April inflation released on Thursday.
Compared to last week, pressure from bond yields has now somewhat cooled down as US 10-year Treasury bond yields retreated to around 4.5%. However, the USD continues to maintain its strength, causing gold to still be contained in the low price range in the recent fluctuation range.
The Strait of Hormuz continues to be the focus of impact on the energy market, inflation expectations and precious metal groups.
The sharp drop in oil prices in the first session of the week due to expectations of US-Iran reaching a peace agreement quickly reversed after the US launched new airstrikes targeting targets in southern Iran, increasing instability around the fragile ceasefire and the prospect of reopening the Strait of Hormuz.
Brent oil prices are currently recovering above the 95 USD/barrel mark, while WTI oil is returning to the 92 USD/barrel zone after a previous deep decline.
According to analysts, the impact on gold is currently intertwined. On the one hand, tensions around Hormuz continue to support safe-haven demand. On the other hand, rising oil prices may increase inflationary pressure, thereby strengthening high interest rate expectations and supporting the USD.
On other markets, the clearest impact is still concentrated in oil prices, refined fuels, sea freight costs, bond markets, USD and energy stock groups.
Global stock markets diễn biến trái chiều before opening in the US. US stock futures rose slightly as investors still bet on the possibility that Washington and Tehran can reach an agreement framework, despite the latest airstrikes.
In Europe, the DAX index of Germany and the CAC 40 of France decreased, while the FTSE 100 of the UK increased slightly. In Asia, the Nikkei 225 of Japan adjusted after a period of reaching a historical peak, and the Kospi of South Korea increased by 2.6% after the holidays.
On the outside market, WTI oil traded around 91.77 USD/barrel, while Brent oil was at 95.24 USD/barrel. The USD Index continued to increase, while the yield of 10-year US Treasury bonds remained around 4.5%.
Technically, analysts believe that gold buyers need to bring prices back to the resistance zone of 4,523–4,546 USD/ounce to regain upward momentum, before heading towards the levels of 4,573 USD and 4,581 USD/ounce.
In the opposite direction, sellers are aiming to pull prices below the support zone of 4,503 USD/ounce. If this mark is broken, gold may fall deeper to 4,490 USD and then 4,453 USD/ounce.
For silver, the nearest resistance zone is in the range of 76.80–78 USD/ounce. If it surpasses this area, silver prices may head to 78.92 USD and then 83.61 USD/ounce.
Meanwhile, the important support zone is currently at 75.55 USD/ounce. If this mark is broken, silver prices may continue to fall to 75 USD and then 74.68 USD/ounce.
