Gold and silver prices are higher in early U.S. trading Tuesday, with gold hitting another record high and silver scoring another 14-year high. Ideas of an easier monetary policy from the Federal Reserve in the coming months are boosting the two precious metals. December gold was last up $14.40 at $3,733.60. December silver prices were up $0.323 at $43.28.
The Federal Reserve’s Open Market Committee (FOMC) meeting begins this morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The FOMC is widely expected to deliver a 25-basis point interest rate cut, which would be the first since November of 2024. The decision comes amid criticism the Fed has been slow to react to weakening U.S. economic data. Updated Fed projections on Wednesday may show slower U.S. growth and rising unemployment, while Fed Chair Jerome Powell is set to face sharp questioning on Fed monetary policy at his post-meeting press conference Wednesday afternoon.
Global stocks were mixed overnight. U.S. stock indexes are pointed to slightly higher openings and at record highs when the New York day session begins.
In overnight news, there are signs of progress in the U.S.-China trade talks held in Madrid, Spain. President Trump and Chinese President Xi Jinping are set to speak Friday to finalize some terms, with discussions also covering the divestment of Chinese-owned TikTok. U.S. Treasury Secretary Scott Bessent said the commercial terms for the TikTok deal had already been settled. Better U.S.-China trade relations likely mean better economic growth for both nations, and that’s bullish for gold and silver from a demand perspective.
The U.S. and India are stepping up talks to resolve their trade tensions, with two separate teams of officials meeting in New Delhi this week, according to a Bloomberg report. The Indian team began talks Tuesday morning with the visiting U.S. trade delegation led by Brendan Lynch, assistant trade representative for South and Central Asia, a person familiar with the matter said in New Delhi, asking not to be identified as the discussions are private. The meeting between the trade teams is expected to decide the future course of India-U.S. negotiations, India’s chief negotiator Rajesh Agrawal said on Monday. The two sides are seeking to resolve their differences after the U.S. slapped India with a 50% tariff last month — the highest in Asia — to penalize the country for its trade barriers and Russian oil purchases.
The key outside markets today see the U.S. dollar index lower and hit a seven-week low, while crude oil prices are firmer and trading around $63.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.04%.
A busy U.S. economic data slate due for release Tuesday includes the weekly Johnson Redbook retail sales report, retail sales, import and export prices, industrial production and capacity utilization, the NAHB housing market index, manufacturing and trade inventories.
Technically, December gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,600.00. First resistance is seen at $3,750.00 and then at $3,775.00. First support is seen at the overnight low of $3,711.80 and then at $3,700.00. Wyckoff’s Market Rating: 9.0.
December silver futures bulls have the strong overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $45.00. The next downside price objective for the bears is closing prices below solid support at $41.00. First resistance is seen at $43.50 and then at $44.00. Next support is seen at this week’s low of $42.47 and then at $42.00.
Source: Jim Wyckoff Kitco
