Gold and silver prices are lower in early U.S. trading Wednesday, with gold sharply down as both metals hit 10-week lows overnight. Technical selling is featured as gold and silver markets are trapped in price downtrends on the daily bar charts. Worries about higher global interest rates and the resulting higher bond yields are also keeping the gold and silver buyers very tentative at present. August gold was last down $99.10 at $4,188.00. July silver prices were last down $0.935 at $64.32.
Key U.S. inflation report on deck this morning. The annual inflation rate in the U.S. is expected to rise to 4.2% in May, marking its highest level since April 2023, from 3.8% in April. This would represent the third consecutive monthly acceleration in headline U.S. inflation, driven largely by higher gasoline prices following the energy shock triggered by the conflict with Iran. However, the broader pass-through to consumer prices is expected to remain relatively limited. On a monthly basis, consumer prices are projected to increase by 0.5% in May, following a 0.6% rise in April. Gasoline prices likely went up around 9%, but the fading impact of a one-off adjustment to rent data should have a moderating effect on inflation. Meanwhile, core inflation, which excludes volatile food and energy prices, is expected to edge up to 2.9% year-on-year, a fresh-high since September 2025, from 2.8% in April. On a monthly basis, core consumer prices are estimated to have risen by 0.3%, after increasing 0.4% in the previous month. TradingEconomics.com
Latest on U.S.-Iran war…
-- U.S., Iran attack each other over Apache downed near Hormuz Strait
The U.S. and Iran exchanged strikes overnight after President Trump retaliated against Tehran for shooting down an American Apache helicopter. The U.S. military said it had completed an operation that saw fighter jets strike Iranian air defenses, ground control stations and radar sites near the Strait of Hormuz. Iran launched missiles on four American targets and fired drones at the U.S.'s main naval base in the Middle East, with no immediate reports of casualties in any of the attacks. The skirmishes further jolted a two-month-old truce and exposed the fragility of talks between the warring sides aimed at securing peace in the Middle East.
Global shipping price rates declining… A key measure of bulk shipping rates saw prices dropping for an eighth consecutive day as demand in the larger-vessel segments cooled. The Baltic Dry Index fell 3.4% to 2,818 points on Tuesday, marking its longest losing streak since mid-January. The fall in the Capesize market coincides with a rise in the number of ballasters, or vessels sailing without cargo, which can signal weakening demand relative to vessel supply. “It’s attributed to the recent loss of momentum in the Capesize segment, but we should note that it has still delivered the strongest first half of the year in the past three years,” said Maria Bertzeletou, a senior market analyst at Signal Group and as reported by Bloomberg. “The index has been on a tear this year, supported by strong demand and volatility linked to the conflict in the Middle East. The Capesize segment accounts for about 40% of the Baltic Dry Index and is the vessel class most exposed to iron ore, a key steelmaking ingredient,” said the report.
The key outside markets today see the U.S. dollar index slightly higher, while Nymex WTI crude oil prices are up and trading around $89.00 a barrel. The yield on the benchmark 10-year U.S. Treasury yield is presently 4.53%.
Technically, August gold futures prices are trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $4,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $4,162.60. First resistance is seen at the overnight high of $4,281.10 and then at $4,300.00. First support is seen at $4,162.60 and then at $4,100.00. Wyckoff's Market Rating: 3.0
July silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $75.00. The next downside price objective for the bears is closing prices below solid support at the March low of $61.66. First resistance is seen at $66.00 and then at $58.00. Next support is seen at $63.00 and then at $61.66. Wyckoff's Market Rating: 3.0
