Spot gold and silver continued to trade weaker in thin Friday trading, as U.S. stock and bond markets were closed for the Juneteenth holiday. The main pressure still came from the Federal Reserve’s more hawkish policy stance, which kept rate-sensitive flows working against precious metals.

At the time of writing, spot gold was trading around $4,154.70 per ounce, down 1.28%, while spot silver fell 1.33% to around $64.71 per ounce.

The Fed kept its target interest rate range unchanged at 3.50%–3.75%, but its policy signals have shifted more clearly toward a hawkish bias. Markets are no longer focused mainly on the possibility of rate cuts, but are beginning to price in the risk that the Fed could raise rates in 2026. This increases the opportunity cost of holding gold, a non-yielding asset.

In addition to interest-rate pressure, physical demand is also softening. Gold premiums in China and several major markets have eased, removing an important source of support for bullion. According to analysts, the current decline looks more like de-risking than panic selling, but gold still lacks a metal-specific catalyst for a strong recovery unless the macroeconomic backdrop shifts back toward lower interest rates.

Geopolitical risk around the Strait of Hormuz remains a key factor to watch. Following the U.S.-Iran memorandum, commercial activity has started to resume, helping pull Brent crude back toward $79.50 per barrel and WTI to around $75.85 per barrel. However, shipping routes have not fully normalized due to navigation risks and vessel backlogs. For gold, this creates a mixed impact: lower oil prices reduce inflation-hedge demand, while unresolved tensions continue to preserve some safe-haven interest.

From a technical perspective, gold needs to regain the $4,180–$4,200 per ounce resistance zone to improve its short-term outlook. If prices break above this area, the next target could be the $4,370–$4,390 zone. Conversely, a break below the session low near $4,121 per ounce could extend downside pressure toward $4,040 and then $4,020 per ounce.

For silver, near-term resistance is seen at $65.00–$66.00 per ounce. A break above this area could open the way toward $66.57 and $68.32. On the downside, if silver falls below $63.18, the next targets could be $62.00 and $61.00 per ounce.

Overall, gold remains under pressure from a hawkish Fed, a stronger U.S. dollar, and elevated Treasury yields. In the short term, markets will continue to monitor upcoming U.S. economic data, especially PMI, PCE, GDP, durable goods orders, and personal income and spending figures, to assess the next direction for monetary policy and gold prices.

📌 This content is for market information purposes only and does not constitute a trading recommendation.

Source: CNBC