Gold Rallies Past $4,130 as Geopolitical Tension Offsets Rising Yields
Precious metals pushed higher in late-afternoon U.S. trading as technical buying and defensive demand took center stage. Despite headwind pressures from rising Treasury yields and surging crude oil prices, both spot gold and silver managed to secure solid gains on the session.
Market Highlights & Key Levels
Spot Gold: Up 1.47% to trade near $4,136.60/oz (session range: $4,075.90 – $4,167.00). Bulls are testing resistance in the $4,140 – $4,200 region, with the next major upside target set at $4,278. Key support holds at $4,080, followed by $4,050.
Spot Silver: Up 1.80% to trade near $59.72/oz (session range: $58.61 – $61.03), successfully extending its breakout above descending trendline resistance. Bulls are looking for a clear move above $61.03 to target $63.24, with primary support sitting around $59.23.
Macro Drivers
Oil & Geopolitics: Ongoing tensions and supply risks around the Strait of Hormuz pushed Brent crude to $94.07 and WTI to $86.83. While safe-haven demand directly benefits bullion, higher energy prices continue to stoke inflation concerns and lift yields.
Rates & Yields: The benchmark 10-year U.S. Treasury yield edged up to 4.66%, keeping real-yield pressure on non-yielding assets.
Equities: Wall Street closed mixed to lower as tech volatility and rising yields offset solid earnings. In contrast, Canada's TSX surged, powered by strength across gold, materials, and energy sectors.
What to Watch Next
Traders are keeping a close eye on incoming Fed communications, Friday’s U.S. flash PMI data, and developments across Red Sea and Gulf shipping lanes ahead of next week’s policy decision. A sustained hold above $4,140 keeps the short-term gold recovery intact.
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