Gold and silver opened weaker after another hot inflation print
Gold and silver both edged lower in early US trading Thursday as a stronger-than-expected PPI report kept pressure on the precious metals complex.
Spot gold was trading near $4,063.50 an ounce, down 0.19% on the session. Spot silver was near $63.235, lower by 0.30%.
The immediate catalyst was inflation. US producer prices rose 1.1% in May and 6.5% from a year earlier, while core wholesale prices increased 0.4% on the month and 4.9% year over year. That kept the market focused on the same issue it has been wrestling with for weeks: higher inflation reduces the room for easier policy and keeps the Fed-rate channel in control.
The labor data did not change the broader picture
Jobless claims moved higher, but not enough to alter the market’s inflation-first read.
Initial jobless claims rose to 229,000 in the week ended June 6, up 4,000 from the prior week. Continuing claims increased to 1.8 million.
Those figures were soft enough to matter at the margin, but not soft enough to outweigh the inflation signal from wholesale prices. For gold and silver, the market still sees rates and yields as the dominant inputs.
Geopolitical stress is supporting volatility, not a clean metals rally
The US-Iran conflict remained active for a second straight day, but the market’s reaction has been more complicated than a simple flight into bullion.
Iran said the Strait of Hormuz was closed. US Central Command disputed that claim, while Washington said its forces disabled another tanker outside the passage as it continued enforcing the blockade on Iranian ports. Traffic was already severely restricted before the latest escalation.
The result is a market that is treating the conflict more as an energy-inflation shock than a straightforward gold bull catalyst. Oil remains the clearest transmission asset. Gold is still seeing intermittent haven support, but not enough to overpower the pressure from inflation and rates.
Equity futures stayed firm even as the macro picture remained tense
US equity futures were higher before the open, suggesting traders were willing to look past the latest conflict headlines and focus instead on whether the inflation data would trigger another move higher in yields.
S&P 500 futures were up 0.5%, Nasdaq futures rose 0.8%, and Dow futures added 0.4%.
That matters for metals because it reinforces the current market structure. Investors are not treating the geopolitical backdrop as a full systemic panic. They are distinguishing between a complete closure shock and the already-restricted operating regime now priced into energy markets.
Outside markets stayed firm
The broader commodity and macro backdrop remained supportive of caution rather than aggressive upside in precious metals.
Nymex WTI crude was trading around $91.00 a barrel, while Brent was near $93.35. The US dollar index was firmer, and the 10-year US Treasury yield was trading near the 4.5% area.
For gold and silver, that combination matters. Firmer crude supports inflation concerns, a stronger dollar makes metals less attractive on the margin, and higher Treasury yields keep the opportunity cost of holding non-yielding assets elevated.
Gold technical levels to watch
On the upside, gold bulls need to reclaim the $4,100.00 to $4,154.00 resistance zone. A sustained move through that area would open the door toward $4,194.00 and then $4,250.00.
On the downside, the near-term bear objective is a break below $4,040.00. Beneath that, the next downside levels are $4,000.00 and then $3,883.00.
For now, first resistance is seen at $4,100.00 and then $4,154.00. First support sits at $4,040.00, followed by $4,000.00.
Silver technical levels to watch
Silver’s next upside objective is a move back above the $66.00 to $68.54 resistance zone. If that area breaks cleanly, the next targets are $70.50 and $72.00.
On the downside, bears are watching for a break below $62.15. Below that, the next support levels are $61.00 and $60.00.
Near-term resistance is seen at $66.00 and then $68.54. Support sits at $62.15 and then $61.00.
WSA Take
Gold and silver are still trading in a market where inflation and rates are doing more directional work than geopolitics alone.
The conflict in the Middle East is keeping volatility high and supporting the broader commodity complex, but precious metals are not getting a clean safe-haven bid while wholesale inflation remains hot and Treasury yields stay firm. Until that balance shifts, gold and silver are likely to remain sensitive to every inflation print, every move in yields, and every headline out of the Gulf.
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