Gold prices remained stable despite elevated yields and a firm dollar, as easing October Federal Reserve rate-hike expectations provided some support to the metal. Spot gold was trading near $4,159.11 an ounce, up 0.10% on the session, while spot silver was trading near $60.980, up 0.18%.

North American equities finished modestly higher after a volatile session driven by sharp swings in the Treasury market. The S&P 500 rose 14.91 points, or 0.19%, to 7,666.45. However, European equities closed sharply lower as another surge in global bond yields weighed on risk appetite.

Market positioning remains centered on the divergence between easing near-term Fed expectations and stubbornly high long-term yields. Initial jobless claims fell to 197,000, below consensus expectations, reinforcing evidence that the labor market remains resilient ahead of Friday’s September employment report.

Treasury yields continue to dominate cross-asset pricing, with the benchmark 10-year note briefly reaching its highest level in more than two decades before retreating later in the session. This afternoon’s ISM manufacturing report showed factory activity eased only marginally while input prices strengthened, reinforcing concerns that inflation pressures remain persistent.

The Strait of Hormuz and U.S.-Iran situation remains an important source of underlying market uncertainty, although the immediate oil-market risk premium eased during Thursday’s session. Recovering Gulf crude exports and a larger-than-expected increase in U.S. crude inventories helped push Brent crude back below the psychologically important $100-per-barrel level.

Lower oil prices reduce immediate inflation pressure, providing modest support for gold, although the unresolved geopolitical backdrop continues to underpin safe-haven demand across commodity markets.

Spot gold bulls’ next upside price objective is to push prices back above $4,190.00 to $4,210.63 resistance, with a sustained move targeting $4,238.00 and then $4,254.44. Bears’ next near-term downside price objective is a break below $4,136.44, with deeper downside targets at $4,112.00 and then $4,073.00.

Spot silver bulls’ next upside price objective is to drive prices back above $61.720 to $62.069 resistance, with a move above that zone targeting $62.834 and then the 50-day moving average near $63.890. The next downside price objective for the bears is a break below $60.639, with deeper downside targets at $59.960 and then $58.940.

This afternoon’s ISM manufacturing report highlighted the ongoing challenges faced by the US economy.

Friday’s nonfarm payrolls report at 8:30 a.m. ET is now the week’s key event, with investors looking for signs of a stronger-than-expected employment report that could reinforce higher-for-longer rate expectations and pressure gold through yields and the dollar.

The ongoing geopolitical tensions in the Strait of Hormuz and U.S.-Iran situation remain an important source of underlying market uncertainty, although the immediate oil-market risk premium eased during Thursday’s session.