- Gold rallies as buyers test the $4,160 resistance level, with spot gold trading near $4,136.60 an ounce, up 1.47%.
- Silver prices also saw a cautious rebound, with spot silver trading near $59.72, up 1.80%.
- The session range for gold was $4,075.90 to $4,167.00, indicating a test of the $4,140 to $4,200 resistance region.
- Analysts express concerns about a sustained rally, noting that both precious metals remain well below their all-time highs.
- Higher interest rates and a stronger U.S. dollar have negatively impacted precious metals, while rising oil prices have shifted market dynamics.
- ING analysts attribute recent gains in gold and silver to 'bargain hunting' rather than significant changes in the geopolitical or macroeconomic landscape.
- UBS has expressed skepticism about a silver rebound, reducing its price target for an attractive entry point from around $55/oz to a range of $48-$50/oz.
Gold prices surged to nearly $4,160, testing key resistance levels as technical buying and defensive demand emerged despite higher crude oil prices and rising Treasury yields. Spot gold traded at $4,136.60, up 1.47%, while silver rose to $59.72, up 1.80%.
Gold's session range was $4,075.90 to $4,167.00, indicating a strong technical setup as it holds above the $4,100 mark. Analysts note that a sustained hold above $4,140 is crucial for maintaining the short-term recovery, while a drop below $4,080 could shift focus back to support levels around $4,050.4
Despite recent gains, analysts remain cautious. ING commodities strategists
Both metals are still well below their all-time highs, with gold peaking at $5,589.38/oz and silver at $121.67/oz earlier this year.
UBS analysts
Diane Garrett
Overall, while gold and silver have shown resilience, the path to sustained recovery remains uncertain amid economic pressures.
“Spot gold's session range reached $4,167, testing the $4,140-$4,200 resistance region, while ING attributed gains to 'bargain hunting after recent weakness.' UBS lowered its silver entry target to $48-$50/oz, citing persistent headwinds from Middle East tensions and a firm US dollar.”
KITCO
CNBC
