Gold and silver prices moved higher in late U.S. trading on Thursday as softer PCE inflation data and a weaker U.S. dollar helped precious metals recover following the Federal Reserve’s hawkish decision to hold interest rates steady.

Spot gold was trading near $4,107.20 per ounce, up 0.55%, while spot silver rose 1.84% to $59.27 per ounce.

Softer PCE Data Supports Gold

The Fed kept interest rates unchanged within the 3.50% to 3.75% target range. However, three FOMC members voted in favor of a 25-basis-point rate increase, keeping the possibility of a September hike alive.

Economic data released after the meeting eased some of the pressure for further tightening:

• Second-quarter real GDP grew at an annualized rate of 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

The figures weakened the U.S. dollar and supported gold. However, inflation remains above the Fed’s 2% target, while Treasury yields are still elevated.

Equities Rise as Oil Retreats

Wall Street rebounded strongly after Microsoft’s earnings revived optimism surrounding AI-related stocks. The S&P 500 gained 1.7%, the Nasdaq rose 2.8%, and the Dow Jones advanced 1.2%.

Oil prices also pulled back from the previous session’s highs. WTI crude traded in the low $80s per barrel, while Brent remained in the high $80s.

Conditions in the Strait of Hormuz remain tense, although shipping activity has not been completely disrupted. Geopolitical risks continue to support safe-haven demand, but another sharp rise in oil prices could increase inflationary pressure and limit gold’s upside.

Key Technical Levels to Watch

Gold’s short-term technical structure improved after the price moved back above $4,101.10.

Key levels include:

• Resistance: $4,114, $4,166, and $4,200

• Support: $4,028.40, $3,995.20, and $3,959.80

For silver, $59.00 is the nearest resistance level. A break above it could open the way toward $60.03 and $61.03. Initial support is seen at $57.95, followed by $56.88.

Conclusion

Softer PCE inflation and a weaker U.S. dollar are helping gold hold above the $4,100 level. However, the next move will depend on September rate expectations, U.S. Treasury yields and developments in the Middle East.

Source: Kitco