[vi] Gold approaches $4,170, silver gains 3% as bond rally lifts precious metals - Kitco PM Report

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[vi] (Kitco NewsWire) - Gold and silver prices are sharply higher in late U.S. trading Thursday, as falling Treasury yields, a weaker U.S. dollar and renewed safe-haven demand helped precious metals recover from Wednesday's inflation-driven selloff. A stronger-than-expected U.S. producer inflation report failed to reverse the rally in government bonds, with concerns over heavily indebted artificial intelligence companies drawing capital into Treasuries. At the time of writing, spot gold was trading near $4,168.70 an ounce, up $64.20, or 1.56%, while spot silver was trading near $57.310, up $1.800, or 3.24%.

[vi] North American equities closed higher after recovering from sharp early losses, as falling Treasury yields and strength outside the technology sector offset continuing concerns about AI infrastructure spending. The S&P 500 advanced 0.3%, recovering from an early decline of approximately 0.6%. The Dow Jones Industrial Average gained 1.1%, supported by health care, retail and other defensive shares. The Nasdaq Composite finished 0.1% higher after reversing an intraday loss of approximately 1.4%. Technology shares remained volatile, but broader market participation improved as the session progressed.

[vi] European equities also finished mostly higher, with earnings strength and defensive-sector demand helping the region outperform technology-heavy markets in Asia. The Stoxx Europe 600 gained approximately 0.3% to 639.85. The U.K. FTSE 100 rose 1.08% to 10,840.35, Germany's DAX added 0.33% to 25,382.62 and France's CAC 40 climbed 0.78% to 7,934.70. Italy's FTSE MIB bucked the broader advance, declining 0.72% to 49,397.55. European health care and telecommunications shares outperformed, while technology and banking stocks faced selling pressure.

[vi] Market positioning remains divided between accelerating inflation and growing concerns about economic and financial-market resilience. September producer prices surged 1.3% on the month and 6.3% from a year earlier, the strongest monthly increase since March 2022. Final-demand energy prices jumped 10.8%, including a 20.3% increase in gasoline. The report followed Wednesday's hotter-than-expected CPI reading of 0.6% month over month and 3.7% annually. September retail sales increased 0.8%, indicating continued consumer resilience, while initial jobless claims edged up to 199,000.

[vi] Despite the inflation surprises, traders continued to view an October Federal Reserve rate hike as less likely than a pause. Futures pricing indicated approximately a 29% to 34% probability of an increase at the Oct. 27-28 meeting, while expectations for additional tightening by December remained elevated. The 10-year Treasury yield fell approximately 10 basis points to 5.09%, its largest daily decline since August 2025, as weakness in AI-related credit and equities increased demand for government bonds. The dollar index also retreated, reducing pressure on non-yielding metals. The next policy tests are Friday's import and export prices, industrial production and Fed Chair Kevin Warsh's remarks at the IMF meetings in Bangkok. Lower yields are supporting gold in the immediate term, but persistent inflation keeps the risk of renewed dollar strength and higher real yields in the trade.

[vi] The Strait of Hormuz and U.S.-Iran situation remains a significant source of energy-market uncertainty, even as regional crude exports recover from earlier disruptions. Tanker attacks and broader security threats around the strait continue to complicate commercial shipping, while Washington is considering easing sanctions on certain oil-carrying vessels to improve tanker availability and reduce transportation costs. Persian Gulf exports have recovered substantially but remain vulnerable to renewed disruption. Brent crude settled slightly lower at $105.92 a barrel, while U.S. WTI crude rose sharply to $96.50, supported by a larger-than-expected decline in domestic inventories and hurricane-related production disruptions. The divergent oil performance highlights the market's competing supply and demand pressures.

[vi] For gold, the unresolved U.S.-Iran conflict continues to support defensive demand, while elevated energy prices remain an inflation risk that could eventually restore upward pressure on yields. Silver's rebound reflects the broader precious-metals recovery, although industrial-demand concerns remain a constraint.

[vi] The key outside markets see Nymex WTI crude oil prices higher and trading near $96.50 a barrel, while Brent crude settled near $105.92. The yield on the benchmark 10-year U.S. Treasury note is trading near the 5.09% area. The U.S. dollar index is softer. (Kitco Global Index shows how much of today's gold move is the dollar versus the gold market itself.)

[vi] Technically, spot gold bulls' next upside price objective is to push prices back above the $4,161.46 to $4,181.44 resistance zone, with a sustained move targeting $4,216.96 and then $4,267.20. Bears' next near-term downside price objective is a break below $4,127.56, with deeper downside targets at $4,107.28 and then $4,088.10. First resistance is seen at $4,181.44 and then at $4,215.59. First support is seen at $4,161.46 and then at $4,127.56.

[vi] Spot silver bulls' next upside price objective is to drive prices back above the $57.400 to $57.860 area, with a move above that zone targeting $58.343 and then $59.541. The next downside price objective for the bears is a break below $56.920, with deeper downside targets at $56.340 and then $55.410. First resistance is seen at $57.400 and then at $57.860. Next support is seen at $56.920 and then at $56.340.

[vi] See live precious metals prices for gold, silver, platinum and palladium — in USD, CAD and 12 more currencies.

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[vi] [Kitco NewsWire](/author/kitco-newswire)

[vi] Articles by Kitco NewsWire were generated by Kitco's AI-assisted reporting workflow and reviewed by Kitco News editorial staff, with every claim independently verified before publication.

[vi] Kitco labels all AI-assisted content as part of our commitment to editorial transparency.

[vi] For questions or corrections, contact the Kitco News editorial team.

[vi] Tags:

[vi] goldsilverAi-assisted-contentNymex WTI crude oil prices10-year U.S. TreasuryU.S. dollar indexU.S. WTI crudeStoxx Europe 600U.K. FTSE 100Germany's DAXFrance's CAC 40Italy's FTSE MIBinflationU.S. producer inflationArtificial IntelligenceS&P 500Dow Jones Industrial AverageFederal Reserve

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[vi] Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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