Gold price rebounds amid weaker USDX, firmer crude oil

(Kitco News, Friday. May 9th, 2025) – Gold and silver futures prices are higher in early U.S. trading Friday, with gold seeing a good corrective bounce from the recent selling pressure. The precious metals are seeing buying support amid friendly outside markets on this day: a weaker U.S. dollar index and higher crude oil prices. However, improved trader/investor risk appetite late this week and an uptick in U.S. Treasury yields today are limiting the upside for gold and silver. June gold was last up $31.30 at $3,337.30. July silver prices were last up $0.138 at $32.755.

Asian and European stock markets were mixed but mostly firmer in overnight trading. U.S. stock indexes are pointed to modestly higher openings today in New York. Risk appetite has up-ticked this week following a U.S.-U.K. trade deal reached and ahead of trade talks between the U.S. and China this weekend. Writes David Morrison with Trade Nation today, regarding the U.S.-China meeting in Switzerland: “While it is understood that these are preliminary discussions, investors are hoping that these negotiations will prove constructive and lead to a timely resumption in bilateral trade. But it’s also worth noting that equities have bounced sharply off the lows hit a month ago. There’s a lot of good news already priced in. It’s also the case that it takes time to reach trade agreements and significant damage has already been done to global trade, with relations between the U.S. and China both frosty and uncertain. In other words, it wouldn’t take much of a disappointment for investors to start reducing their exposure to equities.”

The negative economic impact of the U.S.-China trade war on both countries is very evident when examining ocean shipping volumes. Bloomberg recently reported a one-third drop in import volumes coming into The Port of Los Angeles, which is the busiest container port in North America. A shipping CEO told Bloomberg that ocean shipping from China is down 60%. In the coming weeks there will likely be a serious negative ripple effect on many U.S. businesses, including dock workers, the transportation industry and retailers that deal in imports. It won’t be long until product shortages start showing up on retailer shelves. Transportation industry officials say even if trade deals are reached soon, the turnaround time to re-establish supply chains will be substantial.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are higher and trading around $61.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.382%.

There is no major U.S. economic data due for release Friday.

Technically, June gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $3,448.20. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $3,209.40. First resistance is seen at $3,350.00 and then at $3,400.00. First support is seen at $3,300.00 and then at the overnight low of $3,278.90.

July 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 $34.015. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at Thursday’s high of $33.095 and then at this week’s high of $33.48. Next support is seen at this week’s low of $32.16 and then at $32.00.

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com