Gold and silver prices fell in late U.S. trading on Friday as a stronger U.S. dollar, elevated Treasury yields and higher oil prices outweighed support from softer PCE inflation data.

Spot gold was trading near $4,050.70 per ounce, down 1.27%, while spot silver fell 1.93% to $57.75 per ounce.

Gold Loses Momentum After Failing to Hold Above $4,101

Gold traded between $4,018.20 and $4,112.80 during the session. The precious metal remained above the key $4,000 level but failed to sustain gains above $4,101.

From a technical perspective, gold is still trading below the 50-period moving average near $4,058 and the 100-period moving average around $4,071, indicating that sellers retain the short-term advantage.

Key levels to watch:

• Resistance: $4,101.10, $4,114, and $4,166

• Support: $4,018.20, $3,995.20, and $3,959.80

Silver Remains Under Pressure Below $59

Silver traded between $56.86 and $59.30, but failed to maintain momentum above the $59.00 to $60.03 resistance zone.

Important technical levels include:

• Resistance: $59.00, $60.03, and $61.03

• Support: $56.86, $56.11, and $54.84

Softer PCE Data Does Not Eliminate September Rate-Hike Risk

The Federal Reserve kept interest rates unchanged within the 3.50% to 3.75% range, although three officials voted in favor of a 25-basis-point increase.

Recent economic data showed:

• Second-quarter real GDP grew by 1.5%, down from 2.1% in the first quarter

• Headline PCE fell 0.1% in June and slowed to 3.7% year over year

• Core PCE rose 0.1% month over month and eased to 3.3% year over year

• Initial jobless claims increased to 197,000

• Consumer sentiment rose to 55.2

The data support the case for the Fed to keep rates unchanged, but they do not fully rule out a possible rate increase in September.

Higher Oil Prices and Treasury Yields Add Pressure

Brent crude traded near $90.12 per barrel after rising more than 20% in July, while WTI remained in the mid-$80s.

Higher oil prices increase inflation risks, supporting both Treasury yields and the U.S. dollar. The yield on the benchmark 10-year U.S. Treasury remained near 4.7%, reducing the appeal of non-yielding assets such as gold and silver.

Conclusion

Gold and silver remain under pressure from a stronger dollar, elevated bond yields and rising oil prices. Although PCE inflation has eased, markets have not completely ruled out a Fed rate increase in September.

In the short term, $4,018.20 for gold and $56.86 for silver are the key support levels to monitor.

Source: Kitco