Gold held above $4,100 on Tuesday morning as spot gold traded near $4,169.39 an ounce, up 0.10%, while spot silver traded near $61.397, down 1.03%. The modest gains came as Treasury yields moved higher to 4.499% on the 10-year note at 8:23 a.m. ET and the U.S. dollar index firmed near 100.91 at 8:20 a.m. ET, with traders fading part of last week's payrolls-led rally. The price action reflected anticipation of Wednesday's Fed minutes and renewed geopolitical risk from attacks on commercial vessels near the Strait of Hormuz early Tuesday. Positioning after Thursday's June employment report, which showed 57,000 payrolls added and unemployment holding at 4.2%, remains supportive for gold but less one-sided than immediately after the release.
Gold's early range was $4,116.20 to $4,169.40, leaving the metal above the $4,100 area but below the $4,200 resistance zone that capped the latest rebound. Silver's early range was $60.200 to $62.290, with the metal giving back part of last week's outperformance after failing to sustain momentum above the $62.00 area.
Treasury Yields and Dollar Limit Gold Gains
The 10-year Treasury yield reached 4.499% at 8:23 a.m. ET while the U.S. dollar index traded near 100.91 at 8:20 a.m. ET. The weaker hiring print from Thursday's June employment report reduced the urgency around a near-term Fed hike, but higher yields and the dollar are limiting fresh long additions ahead of Wednesday's Fed minutes. June payrolls rose 57,000 and the unemployment rate held at 4.2%, while April and May payrolls were revised down by a combined 74,000.
Hormuz Attacks Push Oil Prices Higher
Oil prices rose more than 1.5% in early European trade after attacks on commercial vessels near the Strait of Hormuz, including a tanker hit by a projectile off Limah, Oman, early Tuesday. Brent traded near $72.62 and WTI near $69.05 in U.S. pre-market trade. The Strait of Hormuz situation is characterized as open transit with renewed attack risk, not a full chokepoint closure. The oil response remains contained by recovering Gulf exports, ongoing OPEC+ supply increases and a well-supplied physical market. For gold, the immediate effect is a small geopolitical bid in the background, but the dominant trade remains the dollar-yield response to labor data and Fed expectations.
Fed Minutes and CPI Release Scheduled
Traders are watching Wednesday's Fed minutes and the July 14 CPI release at 8:30 a.m. ET. Market participants are also monitoring any follow-through in Hormuz shipping incidents.
Gold Technical Levels Show Resistance at $4,200
Spot gold bulls' next upside price objective is to push prices back above the $4,200.00 to $4,260.00 resistance zone, with a sustained move targeting $4,370.00 and then $4,500.00. Bears' next near-term downside price objective is a break below $4,091.00, with deeper downside targets at $4,000.00 and then $3,959.00. First resistance is seen at $4,200.00 and then at $4,260.00. First support is seen at $4,091.00 and then at $4,000.00.
Silver Tests Support After Pullback from $62
Spot silver bulls' next upside price objective is to drive prices back above the $61.33 to $62.81 area, with a move above that zone targeting $64.00 and then $65.00. The next downside price objective for the bears is a break below $60.69, with deeper downside targets at $59.00 and then $58.00. First resistance is seen at $61.33 and then at $62.81. Next support is seen at $60.69 and then at $59.00.
FAQ
What was gold's price range on Tuesday morning?
Gold's early range was $4,116.20 to $4,169.40, with spot gold trading near $4,169.39 an ounce, up 0.10% on the session.
Why did oil prices rise in early trading Tuesday?
Oil prices rose more than 1.5% in early European trade after attacks on commercial vessels near the Strait of Hormuz, including a tanker hit by a projectile off Limah, Oman, early Tuesday. Brent traded near $72.62 and WTI near $69.05 in U.S. pre-market trade.
What key events are traders watching this week?
Traders are watching Wednesday's Fed minutes, the July 14 CPI release at 8:30 a.m. ET, and any follow-through in Hormuz shipping incidents.
