Spot gold and silver prices edged lower in the final U.S. trading session of the week, as rising Treasury yields and expectations that the Federal Reserve will maintain a steady interest-rate stance continued to pressure precious metals.

At the time of writing, spot gold was trading around $4,118.66 per ounce, down 0.13%. Meanwhile, spot silver traded near $59.809 per ounce, down 0.90% for the session.

Gold Holds Above $4,100 but Fails to Break Resistance

During the session, gold traded within a range of $4,021 - $4,138 per ounce. Although the metal managed to stay above the key $4,100 level, it has yet to break through the important resistance zone of $4,180 - $4,200 per ounce.

This shows that gold’s recovery remains limited, especially as U.S. Treasury yields continue to stay elevated.

Silver faced similar pressure as it failed to hold above the $60 per ounce level. The metal remains below the $61 - $62 resistance zone, suggesting that buying momentum is still not strong enough to confirm a new upward move.

Weak Jobs Data, but the Fed Remains Cautious

The U.S. June jobs report showed that the economy added only 57,000 jobs, below expectations. At the same time, employment figures for April and May were revised lower by a combined 74,000 jobs.

This data initially supported gold, as it reduced expectations that the Fed would move quickly with stronger rate hikes. However, the Fed meeting minutes still showed that inflation risks remain, preventing markets from clearly pricing in a more dovish policy stance.

The 10-year U.S. Treasury yield traded around 4.55%, while the 2-year yield remained above 4.20%. This continues to be a key factor limiting gold’s upside momentum.

Hormuz Tensions Support Defensive Demand

Tensions around the Strait of Hormuz remain a supportive factor for gold’s safe-haven demand. However, there is currently no confirmed sign that this key shipping route has been fully closed.

This creates a two-sided impact. Geopolitical risks help support gold, but higher oil prices and inflation pressure keep yields elevated, which limits the upside for precious metals.

Technical Outlook

For gold, the near-term resistance level to watch is $4,138 per ounce. If gold breaks above this area, price could move toward $4,203, followed by the area near $4,352.

On the downside, if gold breaks below $4,021, selling pressure could return, with deeper support levels at $3,942 and $3,886.

For silver, near-term resistance is seen at $61.71 and $62.81. Key support levels to watch are $58.27 and $55.60.

Conclusion

Gold continues to hold above the $4,100 area, but its upside remains limited by elevated U.S. yields and the Fed’s cautious stance on inflation. Meanwhile, silver remains under pressure after failing to stay above the $60 level.

Source: Kitco