Gold price down on more profit-taking, weak long liquidation

(Kitco News, Friday. April 4th, 2025) – Gold prices are lower and silver sharply down and hit a nine-week low in early U.S. trading Friday. While high risk aversion permeates the general marketplace late this week, the safe-haven metals are seeing more profit-taking pressure and weak long liquidation from the shorter-term futures traders. June gold was last down $21.60 at $3,100.10. May silver prices were last down $1.015 at $30.955.

The global markets turmoil is overshadowing Friday morning’s March U.S. employment report from the Labor Department. The key non-farm payrolls figure came in an a stronger-than-expected rise of 228,000 versus expectations for up 140,000 and compares to a downwardly revised rise of 117,000 in the February report.

Asian and European stock markets were solidly lower in overnight trading. U.S. stock indexes are again pointed to sharply lower and multi-month-low openings today in New York. Risk aversion remains very high to end the trading week after the U.S. tariff news announced Wednesday, and now retaliatory trade actions by U.S. counterparts. Headlining the retaliation is China just announcing new 34% tariffs on all U.S. goods coming into the second-largest world economy.

The Fed funds futures market is now pricing in five U.S. interest rate cuts this year. At 0.25% for each cut, that’s a 1.25% total cut this year. Analysts are saying the Fed funds futures are pricing in a U.S. recession.

Legendary investor Warren Buffet has said in the past he likes to buy stocks when there is blood in the street. He also said when most others are greedy he is fearful, and when most others are fearful he is greedy. Many would agree such are the cases today.

The Japanese yen and Swiss franc are seeing safe-haven buying this week.

The key outside markets today see the U.S. dollar index up a bit but not far above Thursday’s six-month low. Nymex crude oil futures prices are sharply down, hit a nearly four-year low and are trading around $62.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is now below 4% and presently at 3.9%. U.S. Treasuries are seeing flight-to-quality buying of U.S. debt amid the roiled marketplace.

Technically, June gold futures bulls still 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 $3,201.60. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,031.00. First resistance is seen at $3,150.00 and then at the overnight high of $3,160.20. First support is seen at the overnight low of $3,089.30 and then at this week’s low of $3,073.50.

May silver futures bears have the overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $33.00. The next downside price objective for the bears is closing prices below solid support at the December low of $29.405. First resistance is seen at $31.50 and then at $32.00. Next support is seen at the overnight low of $30.81 and then at $30.50.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com