Spot gold and silver prices posted sharp gains Friday morning, with gold trading near $4,175.50 an ounce (up 1.30%) and silver near $62.220 (up 2.28%), as U.S. markets remained closed ahead of the Independence Day holiday. The rally extended Thursday's post-payrolls momentum, driven by a weaker-than-expected U.S. employment report that continued to pressure the dollar and Treasury yields while triggering short-covering in precious metals. The June nonfarm payrolls report showed 57,000 jobs added with the unemployment rate at 4.2%, reducing near-term Federal Reserve rate-hike urgency and supporting metal prices through the dollar-and-rates channel.
June Payrolls Report Shows 57,000 Jobs Added
Nonfarm payrolls rose 57,000 in June and the unemployment rate slipped to 4.2%, while leisure and hospitality lost 61,000 jobs and private payrolls rose 49,000. The soft hiring print pushed the dollar lower and left the 10-year Treasury yield near the 4.5% area. Rate traders still assign material odds to another hike later this year.
Gold's early range was $4,120.50 to $4,196.10, keeping the metal within striking distance of the $4,200 level. Silver's early range was $60.80 to $63.02, with the metal outperforming gold and moving into its first major post-payrolls resistance band.
Strait of Hormuz Shipping Flows Normalize
Shipping flows through the Strait of Hormuz are normalizing and oil prices have returned toward prewar levels, with Brent near $72.02 and WTI near $68.73. U.S.-Iran negotiations remain fragile and disputes over Hormuz administration and transit fees are not resolved. The current market impact is disinflationary at the margin, with lower oil reducing immediate energy-shock risk for yields and the Fed. Gold's main support is now coming from the dollar-and-rates channel rather than fresh panic demand tied to the waterway.
Traders Monitor July 14 CPI Release and July 29 FOMC Decision
Traders are watching holiday-thinned North American trade after Thursday's payrolls report, while looking ahead to the July 14 CPI release at 8:30 a.m. ET and the July 29 FOMC decision. The U.S. dollar index is lower. The yield on the benchmark 10-year U.S. Treasury note is trading near the 4.5% area. Nymex WTI crude oil prices are steady and trading around $68.73 a barrel, while Brent crude was near $72.02.
Gold Technical Levels Target $4,200 Resistance Zone
Spot gold bulls' next upside price objective is to push prices back above the $4,200.00 to $4,350.00 resistance zone, with a sustained move targeting $4,500.00 and then $5,000.00. Bears' next near-term downside price objective is a break below $4,091.00, with deeper downside targets at $4,000.00 and then $3,950.00. First resistance is seen at $4,200.00 and then at $4,350.00. First support is seen at $4,091.00 and then at $4,000.00.
Spot silver bulls' next upside price objective is to drive prices back above the $64.00 to $64.50 area, with a move above that zone targeting $72.00 and then $89.00. The next downside price objective for the bears is a break below $60.05, with deeper downside targets at $58.00 and then $55.00. First resistance is seen at $64.00 and then at $64.50. Next support is seen at $60.05 and then at $58.00.
FAQ
What caused gold prices to rise on Friday morning?
Gold prices rose to near $4,175.50 an ounce (up 1.30%) on Friday morning following Thursday's weaker-than-expected U.S. employment report, which showed nonfarm payrolls rising 57,000 in June with the unemployment rate at 4.2%. The soft jobs data pressured the dollar and Treasury yields, triggering short-covering in precious metals.
What are the key resistance levels for gold?
Spot gold's next upside price objective is the $4,200.00 to $4,350.00 resistance zone, with a sustained move targeting $4,500.00 and then $5,000.00. First resistance is seen at $4,200.00 and then at $4,350.00, while first support is at $4,091.00 and then at $4,000.00.
When is the next major economic data release traders are watching?
Traders are looking ahead to the July 14 CPI release at 8:30 a.m. ET and the July 29 FOMC decision as the next major events following the June payrolls report.
