Spot gold prices moved higher in late Monday trading, while silver stood out as the strongest performer among precious metals. The rally was supported by a weaker U.S. dollar, lower expectations for Treasury yields, and a sharp decline in crude oil prices as markets grew more optimistic about a potential easing of tensions between the U.S. and Iran.

At the time of writing, spot gold was trading near $4,569.30 per ounce, up 1.35%, while spot silver was trading around $77.95 per ounce, gaining 3.38% on the session.

Markets React to Signs of Geopolitical De-escalation

The Strait of Hormuz remains the key geopolitical channel influencing energy prices, inflation expectations, and sentiment toward safe-haven assets.

On Monday, investors were not trading on the fear of fresh supply disruption. Instead, markets leaned toward the possibility that the U.S. and Iran could be moving closer to a peace agreement. This pushed crude oil prices to a two-week low, with Brent falling below $100 per barrel and WTI trading near $91 per barrel.

Lower oil prices helped ease concerns over energy-driven inflation. As inflation pressure softened, expectations that the Federal Reserve would need to maintain a more hawkish policy stance also eased, providing support for both gold and silver.

Silver Outperforms Gold

While gold benefited from a softer U.S. dollar and lower rate expectations, silver posted stronger gains as positive sentiment spread across rate-sensitive and growth-sensitive assets.

Global equity markets also moved higher. Japan’s Nikkei 225 rose nearly 3%, Europe’s Stoxx 600 gained about 1%, and U.S. stock futures also advanced, even though U.S. cash markets were closed for Memorial Day.

This suggests that investors were pricing in a more constructive scenario: lower oil prices, reduced inflation pressure, a softer dollar, and improved risk appetite.

Key Technical Levels to Watch

For spot gold, the nearest resistance level is around $4,580.80 per ounce, followed by the $4,660 per ounce area. If prices can sustain momentum above this zone, the next upside targets could be $4,678 and then $4,800 per ounce.

On the downside, the first support level for gold is seen at $4,533.90 per ounce, followed by $4,500 and $4,380 per ounce.

For silver, the key resistance zone lies between $78.95 and $89.00 per ounce. A successful breakout above this area could open the way toward higher targets at $90.00 and then $100.00 per ounce.

On the downside, silver’s nearest support is seen at $76.40 per ounce, followed by $72.00 and $70.00 per ounce.

Conclusion

The late-session rally in gold and silver shows that precious metals are being supported by three key factors: a weaker U.S. dollar, lower yield expectations, and easing crude oil prices. However, developments around the Strait of Hormuz and the progress of U.S.-Iran negotiations will remain important variables in the coming sessions.

For gold, the $4,580–$4,660 per ounce resistance zone will be important to watch in order to assess whether the current upward momentum can continue. For silver, a retest of the $78.95 per ounce level will be a key signal to determine whether the rally has enough strength to extend toward higher price zones.

Source: Kitco

Disclaimer: This content is for informational and educational purposes only. Financial trading involves risk. Past performance does not guarantee future results.