Gold price hits another record high on sustained safe-haven demand

(Kitco News, Wed. Feb. 5th, 2025) – Gold prices are higher and hit another all-time high in early U.S. trading Wednesday, as safe-haven demand continues to push the yellow metal into uncharted territory. Traders and investors remain jittery amid U.S. President Trump’s unpredictable and potentially disruptive policy actions. China-U.S. trade tensions are running high as both nations this week have ratcheted up their tariffs and taken other hostile business steps against the other. April gold was last up $19.00 at $2,895.00. March silver prices hit a seven-week high overnight and were last down $0.042 at $32.98.

Asian and European shares were mostly weaker overnight. U.S. stock indexes are set to open lower when the New York day session begins. Alphabet’s stock is down 7% in pre-market trading after reporting disappointing quarterly revenue because of a slowdown in its cloud business.

Trump’s policy moves recently are mostly overshadowing routine U.S. economic data releases. Friday comes the U.S. employment situation report for January, with the key non-farm jobs number seen coming in at up 169,000 versus a rise of 256,000 in the December report.

The Japanese yen is appreciating on the foreign exchange market after Japanese wages rose at the fastest pace in nearly three decades, supporting the Bank of Japan’s latest rate hike and keeping the BOJ on track for more monetary policy tightening.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are lower and trading around $72.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.472%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, the international trade report, the U.S. services purchasing managers index (PMI), the ISM report on business services, the global services PMI, and the weekly DOE liquid energy stocks report.

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 the overnight contract high of $2,901.50 and then at $2,915.00. First support is seen at the overnight low of $2,870.10 and then at $2,850.00.

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 the overnight high of $33.215 and then at the December high of $33.33. Next support is seen at the overnight low of $32.63 and then at Tuesday’s low of $32.225.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@ gmail.com