Gold and silver prices weaken as a stronger US dollar and stalled US-Iran negotiations exert joint pressure
Huitong Network, May 23 – On Friday (May 22) early trading, spot gold and silver prices both came under pressure and pulled back. The strength of the US dollar and high oil prices exerted dual pressure on the precious metals market. Although the ongoing Middle East geopolitical tensions continue to provide safe-haven support, the tug-of-war between bullish and bearish forces has made it difficult for gold prices to break through key resistance areas.
In early trading on Friday (May 22), spot gold and silver prices both came under pressure and retreated. The US dollar’s strength and high oil prices placed dual pressure on the precious metals market. Although the ongoing Middle East geopolitical tensions continue to provide safe-haven support, the tug-of-war between bullish and bearish forces makes it hard for gold to overcome critical resistance zones.
Spot gold was quoted at $4,522 per ounce (UTC+8) during intraday trading, down about 0.44%; spot silver was quoted at $75.80 (UTC+8), down about 1.00%.
Indirect talks between the US and Iran, mediated by Pakistan, are still ongoing, but both sides have yet to reach substantive agreements on core issues. A senior Iranian official revealed that the gap has narrowed, but a deal is far from being finalized. Iran’s uranium enrichment program and its control over the Strait of Hormuz remain focal points of contention in the negotiations.
US Secretary of State Rubio has taken a cautious stance regarding the negotiations, stating that the two sides have made "some progress," but emphasizing that they "have not yet reached their target."
The situation in the Strait of Hormuz continues to affect global energy markets. Iran and Oman are discussing a plan to charge passage fees for ships transiting the strait, but this has met clear opposition from US President Trump. Trump stated that the US wants the Strait to remain open and toll-free, warning that if Iran seeks to develop nuclear weapons, the US will take extreme countermeasures.
The pressure on the precious metals market this time is more driven by inflationary logic rather than pure safe-haven sentiment. Brent crude was quoted at about $104.44 per barrel (UTC+8), and US WTI crude at about $97.44 per barrel (UTC+8). Elevated oil prices are fueling global inflation expectations, strengthening the US dollar and increasing US Treasury yields, thereby putting pressure on gold, which does not generate interest income.
Meanwhile, the University of Michigan’s final May consumer sentiment index fell further to 44.8, below the preliminary reading of 48.2; the consumer expectations index also dropped from 48.5 to 44.1. It is worth noting that the one-year inflation expectation rose from 4.5% to 4.8%, and the five-year inflation expectation climbed from 3.4% to 3.9%, both indicating that inflationary pressures are still rising.
Signals from the Federal Reserve
Federal Reserve official Waller gave a speech on Friday, stating that he does not support rate hikes in the short term, believing that it is currently more appropriate to keep rates steady. He pointed out that inflation will be the key variable in future policy decisions. This statement has to some extent eased market concerns about rate hikes this year, but overall hawkish monetary policy expectations still limit gold prices.
On the daily chart, gold is trading above the 200-day moving average (around $4,375), but remains below the 100-day moving average (around $4,798), showing a generally neutral-to-bearish trend. The key resistance zone above is $4,538 to $4,546. A break above this zone targets $4,573, and then $4,670. The primary support below is at $4,490; if this level is breached, attention shifts to $4,453 and $4,400. The RSI indicator is currently around 40, and the MACD remains in negative territory and continues to weaken, indicating limited momentum for a sharp short-term rebound.
For silver, bulls need to reclaim resistance at $76.00 to $76.50 (UTC+8). A breakout above would target $78.00 (UTC+8) and $79.00 (UTC+8); on the downside, the initial support is at $75.00 (UTC+8), and if that is broken, focus turns to $74.68 (UTC+8) and $74.00 (UTC+8).
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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Updated: Delta Air Lines warns that as fuel prices hit profits, airline capacity will tighten further
Delta Airlines lowers its annual profit forecast due to an expected increase in fuel costs to $6 billion. The CEO stated that ticket prices have risen by about 20% this year, with limited passenger resistance. Analysts warn that maintaining high ticket prices in 2027 is critical for improving profitability. The article includes comments from the earnings call and analyst remarks. Rajesh Kumar Singh/Shivansh Tiwary, Reuters Chicago, October 9 - Delta Airlines (DAL.N) said on Friday that, despite strong travel demand and rising ticket prices, soaring fuel costs have forced it to cut its 2026 profit expectations by nearly a quarter. So, the airline industry may need to further limit flight growth next year to protect profitability. This warning highlights the increasingly tough challenges faced by U.S. airlines. While strong demand and restricted seat growth have allowed airlines to significantly raise ticket prices and offset higher fuel costs, aggressively increasing flights to capture more demand may intensify competition, making it harder to maintain high fares and protect profits. Based in Atlanta, Delta now expects its annual fuel expenditure to increase by about $6 billion compared to last year—about $2 billion higher than its July forecast—due to the Iran war (link) causing global jet fuel prices to spike. Airlines worldwide are preparing for a prolonged fuel shock. Michael O’Leary, CEO of Ryanair Group RYA.I, said Thursday that high jet fuel prices could persist for another 12-18 months (link), adding more pressure on airlines to raise fares and control costs. https://www.reuters.com/graphics/AUTOMATED-20261008/A4A-JET-FUEL-DAILY-1Y/xmpjwjnmbvr/chart.png “In a high-cost environment, you can’t simply grow your way out,” Delta CEO Ed Bastian said on the earnings call. He noted that the industry has already taken steps to restrict capacity, but more measures will be needed next year to improve profitability. Bastian said Delta raised ticket prices about 20% this year, and passenger resistance has been limited. He is confident that even if fuel costs eventually drop, the high fares can still be maintained. Delta lowered its adjusted annual earnings per share forecast from the July prediction of $6.50-$7.50 to $5.10-$5.60. According to LSEG data, the midpoint of the new range is below analysts’ average expectation of $5.46. Third-quarter adjusted earnings per share were $1.72, four cents below analysts’ average forecast. In midday trading, shares of Delta dropped 1.7%, United Airlines UAL.O fell 1.4%, and both American Airlines AAL.O and Southwest Airlines LUV.N were down about 1%. Delta partly shields itself from rising fuel costs by owning a refinery outside Philadelphia (link), which is expected to generate over $700 million in profits this year. Even with this buffer, the airline expects its fourth-quarter fuel price to rise from $3.61 per gallon in Q3 to $4.25 per gallon. Delta forecasts adjusted fourth-quarter earnings per share to be between $1.15-$1.65, with the $1.40 midpoint roughly matching analysts’ average expectation of $1.39. Fare increases Government data shows that in the first eight months of 2026, U.S. airlines spent $42.9 billion on fuel, an increase of $13.2 billion compared to the same period last year despite slightly reduced consumption. According to the U.S. Bureau of Labor Statistics, strong demand and limited seat growth pushed average U.S. airline ticket prices up by about 25% year-on-year between April and August. https://www.reuters.com/graphics/USA-AIRLINES/FUEL/lbpgdnbzwvq/chart.png Analysts at Melius Research said that despite surging fuel costs, Delta’s ability to raise fares helps keep second-half profits roughly stable. Still, they warn that the company’s profit margin has struggled to improve over the years. “It is critical for margin improvement to maintain or raise fares in 2027,” they wrote in their research report. With industry capacity growth expected to accelerate in Q4, this challenge will likely become even tougher. Deutsche Bank analysts expect the proportion of fuel costs recouped through revenue measures to fall in Q4 and predict full recovery won’t happen until early 2027. Bastian noted that low industry returns are another reason for limiting capacity growth. He said Delta will be cautious with its 2027 capacity plan until the fuel price outlook becomes clearer. He added that international routes may account for a larger share of Delta’s capacity expansion compared to domestic routes. Currently, Delta says its premium cabins and corporate travel business remain strong, and its economy cabin business is gradually improving. With Q4 ticket bookings already exceeding 60%, Delta expects revenue to increase about 20% year-on-year, despite limited capacity growth. Executives said early booking trends for Q1 2027 are also encouraging. (For the convenience of non-native English speakers, Reuters automatically translates its reports into several
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