Gold price sharply down as risk aversion recedes

(Kitco News, Friday. June 27th, 2025 ) – Gold and silver prices are sharply lower, with gold hitting a four-week low, in early U.S. trading Friday. Tensions in the Middle East have quickly, surprisingly and significantly de-escalated this week and that’s bearish for the safe-haven metals. August gold was last down $61.70 at $3,286.30. July silver prices were last down $0.796 at $35.795.

Asian and European stocks were mixed to firmer overnight. U.S. stock indexes are pointed to firmer openings today in New York, with the Nasdaq and S&P 500 indexes this week hitting record highs. A de-escalating geopolitical situation in the Middle East is providing better risk appetite in the general marketplace.

Also, on Thursday the Trump administration said the U.S. and China have formally signed a new trade agreement, bringing months of negotiations to a close. While details remain scant, the announcement was embraced by stock and commodity market bulls. “Investors welcomed the confirmation as a positive signal for supply chains and global trade, even if the implementation timeline remains vague,” said David Morrison with Trade Nation. “Investors were also encouraged after White House Press Secretary Karoline Leavitt told reporters that President Trump’s July 8 and 9 deadlines for restarting tariffs on the rest of the US’s trading partners were ‘not critical,’ and could be extended,” said Morrison.

The key outside markets today see the U.S. dollar index slightly higher after hitting a 3.5-year low Thursday. Nymex crude oil futures prices are slightly up and trading around $65.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.27%.

U.S. economic data due for release Friday includes the personal income and outlays report, including the important inflation gauges. The University of Michigan consumer sentiment survey is also out today.

Technically, August gold futures bulls have the overall near-term technical advantage but are fading.  Bulls’ next upside price objective is to produce a close above solid resistance at $3,400.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at $3,300.00 and then at the overnight high of $3,341.40. First support is seen at $3,269.10 and then at $3,250.00.

July silver futures bulls have the overall near-term technical advantage but trading has turned choppy at higher levels recently. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the June high of $37.405. The next downside price objective for the bears is closing prices below solid support at $34.00. First resistance is seen at $36.00 and then at $36.50. Next support is seen at $35.50 and then at this week’s low of $35.195.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com