Gold prices are mildly higher and hit a two-week high in early U.S. trading Tuesday, on a mild safe-haven boost after President Trump said he has fired a Federal Reserve governor. Silver prices are weaker. December gold was last up $8.00 at $3,425.50. September silver prices were down $0.228 at $38.475.
President Trump late Monday moved to fire Federal Reserve Board Governor Lisa Cook following allegations she falsified mortgage documents, citing “sufficient cause” to fire her. Cook fired back and said Trump has no authority to fire her, and she won’t quit, with her lawyer planning to take “whatever actions are needed to prevent” Trump’s “illegal action.” Forcing out Cook would give Trump an opportunity to secure a four-person majority on the Fed’s seven-member Board of Governors. Global stock and financial markets were not seriously rattled by the news, but neither did they take it in stride. Gold saw a mild safe-haven boost. Most Asian and European markets sold off a bit, while the U.S. stock indexes were slightly lower overnight. U.S. Treasury market yields up-ticked and the U.S. dollar index weakened slightly.
In other news, France’s Prime Minister Francois Bayrou has called a confidence vote that may topple the French government as soon as next month, prompting a sell off in France’s stock market. The far-right National Rally party, the leftist France Unbowed, the Greens, and the Socialists said they would vote against the Sept. 8 motion, which could force Bayrou to submit his government’s resignation. According to Antonio Barroso and Jean Dalbard of Bloomberg Economics, “Opposition parties seem inclined to oppose the motion. Unless they backtrack, the government will fall.” Prime Minister Francois Bayrou called a confidence vote that may topple France’s government as soon as next month, prompting a sell off in French assets as investors hedged for more political uncertainty. France’s 10-year bond yield inched up to near 3.52%, the highest since mid-March, underperforming other European bonds, as investors weighed growing political uncertainty in France.
China is sending Vice Commerce Minister Li Chenggang to the U.S. to meet with U.S. officials and business people, a move that signals talks are progressing after President Trump extended a tariff truce, Bloomberg reports. The trip is not part of a formal negotiating session, and Li is expected to meet with deputies of U.S. Trade Representative Jamieson Greer and Treasury Department officials. The pause in the trade rift between the U.S. and China has given the countries more time to discuss other issues, and Beijing sending Li to the U.S. is seen as “a bullish sign for a deal” that could unlock a summit between Trump and President Xi Jinping, said Bloomberg.
The Trump Administration on Monday outlined plans to implement a 50% tariff on products from India, the latest signal that the U.S. plans to push ahead with the higher duties. The notice posted by the Department of Homeland Security said that the increased levies would hit Indian products “that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 27, 2025.” President Trump announced plans earlier this month to double tariffs on Indian goods from 25% to 50% due to India’s purchases of Russian oil, in hopes of pressuring Russian President Vladimir Putin to the negotiating table to end the Russia-Ukraine war.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, durable goods orders, the quarterly and monthly house price indexes, the S&P Core Logic house index, the consumer confidence index and the Richmond Fed business survey.
Technically, December gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,500.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the July low of $3,319.20. First resistance is seen at the overnight high of $3,434.70 and then at $3,450.00. First support is seen at the overnight low of $3,396.10 and then at last week’s low of $3,353.40. Wyckoff’s Market Rating: 6.5.
September silver futures bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the July high of $39.91. The next downside price objective for the bears is closing prices below solid support at the July low of $36.28. First resistance is seen at last week’s high of $39.09 and then at $39.91. Next support is seen at $38.00 and then at $37.50.
Source: Kitco
