Gold prices are sharply up and hit new all-time highs in early U.S. trading Monday. Prices are now within striking distance of $3,000.00 an ounce. Gold and silver markets are continuing to see safe-haven demand amid concerns about global economic growth as the U.S. is slapping more tariffs on its trading partners. The rapid changes taking place in other U.S. government policies also has the marketplace nervous. April gold was last up $48.20 at $2,935.80. March silver prices were last up $0.242 at $32.685.
Asian and European shares were mixed to firmer in trading overnight. U.S. stock indexes are set to open higher when the New York day session begins. For the moment the U.S. stock market traders and investors are not reacting with anxiety to news out over the weekend that U.S. President Trump plans to impose 25% tariffs on all imports of steel and aluminum. Bloomberg reports “the fast pace of U.S. tariffs is causing economists to start re-evaluating their impact on the economy, with some warning that the risks to growth are front-loaded.” Reads a Barrons headline today: “Stock markets think Trump is crying wolf on more tariffs.”
Reports said China has started a pilot program that allows insurers to buy gold for the first time. The move would potentially free up $27 billion of funds, according to one report. The new policy signals that Chinese authorities recognize gold as an investment alternative as its property sector struggles, Bloomberg said.
In other news, China’s January consumer price index rose 0.5%, year-on-year, which was above market expectations.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are firmer and trading around $72.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.499%.
U.S. economic data due for release Monday includes the employment trends index and monthly retail chain store sales.
Technically, April gold futures bulls have the strong overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $3,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,800.00. First resistance is seen at $2,940.00 and then at $2,950.00. First support is seen at $2,900.00 and then at the overnight low of $2,879.90. Wyckoff’s Market Rating: 9.5.
March silver futures bulls have the overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at $33.00 and then at the December high of $33.33. Next support is seen at the overnight low of $32.03 and then at $31.61. Wyckoff’s Market Rating: 6.5.
Source: Jim Wyckoff Kitco
