According to Kitco, spot gold and silver prices rose sharply at the end of Thursday's session, as safe-haven demand related to US-Iran risks met with cooling crude oil prices at the end of the session, after new signals of the possibility of reaching an agreement.
At the time of writing, spot gold prices traded around the threshold of 4,214.4 USD/ounce, up 3.54%; while spot silver prices were at 67.22 USD/ounce, up 6.20% in the session.
Producer prices in the US increased by 1.1% in May and 6.5% compared to the same period last year. In which, energy in the final demand increased by 10.7% compared to the previous month. The number of initial jobless claims increased to 229,000 in the week ending June 6, from 22.5 million the previous week.
This series of data continues to draw metal traders' attention to inflationary pressure, although falling bond yields at the end of the session somewhat supported gold prices after the morning sell-off.
The Strait of Hormuz continues to be the focus of pressure on many types of assets in the session. Iran's leading Joint Military Command said that the strait has been closed to oil tankers and commercial ships.
Meanwhile, the US side said that commercial ships continued to move through this area and no US warships were attacked.
At the beginning of the session, Brent oil prices rose to 95.40 USD/barrel, and WTI oil to 92.63 USD/barrel after US attacks targeting Iran and Tehran's announcement of the closure of the strait.
However, oil prices then reversed when US President Donald Trump canceled planned attacks and said discussions on the agreement had progressed. This development forced the market to assess both the risk of sea transport disruption and the possibility of cooling down tensions.
For gold, the overall impact is strongly fluctuating shelter buying power, instead of a clear breakthrough. Meanwhile, oil, bond yields, stocks and the USD have become more direct response channels to the shock related to the Strait of Hormuz.
In important external markets, Nymex WTI crude oil prices are under pressure and are trying to close the session below the threshold of 87 USD/barrel, while Brent oil is testing the 90 USD/barrel zone. The USD index fell at the end of the session. The yield of 10-year US Treasury bonds traded around 4.5%.
Technically, the next upward price target of spot gold buyers is to bring prices back above the threshold of 4,100 USD/ounce, with a sustainable increase that may be heading towards the resistance zone of 4,180-4,200 USD/ounce. Meanwhile, the next short-term downward price target of the selling side is to pull prices below the support zone of 4,000-4,020 USD/ounce.
If this zone is broken, deeper down targets are at 3,880-3,900 USD/ounce, followed by 3,500 USD/ounce. The first resistance is recorded at 4,100 USD/ounce, followed by the 4,180-4,200 USD/ounce zone. The first support is at 4,000-4,020 USD/ounce, followed by 3,880-3,900 USD/ounce.
For spot silver, the next price increase target for buyers is to bring prices back above the 65-66 USD/ounce range. If it passes this area, the price may head towards the 71-72 USD/ounce range. In the opposite direction, the next price decrease target for sellers is to break the 61 USD/ounce threshold, followed by 60 USD/ounce.
Deeper downward targets are at 57 USD/ounce and 50 USD/ounce. The first resistance of silver is recorded at 65-66 USD/ounce, followed by 71-72 USD/ounce. The next support is at 61 USD/ounce, followed by 60 USD/ounce.
