Gold price up on safe-haven bids, lower USDX

(Kitco News,Tuesday, March 11th, 2025) – Gold and silver prices are higher in early U.S. trading Tuesday, on a resumption of safe-haven demand amid rising worries about a U.S. economic recession amid a major sell off in the U.S. stock market. A lower U.S. dollar index that notched a four-month low overnight is also a friendly outside-market element for the two precious metals. April gold was last up $17.90 at $2,917.30. May silver prices were last up $0.395 at $32.925.

Asian and European stock markets were mixed overnight. U.S. stock indexes are pointed to modestly higher openings when the New York day session begins, following recent selling pressure that has pushed the major indexes to multi-month lows. Reads a Wall Street Journal headline today: “Stock market plunges, recession worries spread.”

SP Angel today reported the Japanese yen “carry trade” continues to unwind as JGB yields tick higher, with the USD/JPY now sliding to 147.4, from 158 at the beginning of the year.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are firmer and trading around $66.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.226%.

The U.S. data points of the week are the consumer price index report for February on Wednesday and the producer price index for February on Thursday. The CPI report is seen coming in at up 2.9%, year-on-year, versus a rise of 3.0 in the January report. The PPI report is seen up 0.3%, month-on-month compared to a rise of 0.4% in the January report.

U.S. economic data due for release Tuesday includes the NFIB small business index, the Johonson Redbook weekly retail sales report, and the JOLTS survey.

Technically, April gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,974.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $2,844.10. First resistance is seen at this week’s high of $2,926.40 and then at last week’s high of $2,941.30. First support is seen at $2,900.00 and then at the overnight low of $2,882.50.

May silver futures bulls have the slight overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the February high of $34.56. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at last week’s high of $33.38 and then at $34.00. Next support is seen at the overnight low of $32.215 and then at $32.00.

Posted by:

Jack Dempsey, President
401 Gold Consultants LLC jdemp2003@gmail.com