(Kitco News, Wed. April 2nd, 2025) – Gold prices are modestly higher and not far below Tuesday’s record highs. Risk aversion is still keen at mid-week ahead of this afternoon’s new trade tariff levies from the Trump administration. June gold was last up $11.70 at $3,157.70. May silver prices were last up $0.316 at $34.625.
Bloomberg estimates that up to $33 trillion in global trade is under risk with countries from Brazil to China facing between a 4% and 90% drop in their exports to the U.S. Bloomberg’s global trade policy uncertainty index soared to the highest level since records began in 2009. Bloomberg Economics analysis suggests that in the worst-case scenario measures would add up to 28 percent to average US tariff rates, dropping 4 percent from U.S. GDP and lifting prices by around 2.5%.
Asian and European stock markets were mixed in overnight trading. U.S. stock indexes are pointed to lower openings today in New York.
Respected broker SP Angel today reports marketplace “focus is also on the China yuan devaluation, which may be rolled out to counter a trade war with the U.S., with previous episodes noted in 2005 and 2015. China is likely to lower rates this year to support their ailing economy.”
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil futures prices are a bit weaker and trading around $71.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.17%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, manufacturers’ shipments and inventories and the weekly DOE liquid energy stocks report.
Technically, June gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,200.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,031.00. First resistance is seen at the contract high of $3,177.00 and then at $3,200.00. First support is seen at the overnight low of $3,135.70 and then at this week’s low of $3,112.40.
May silver futures bulls have the solid overall near-term technical advantage. Prices are in a choppy, three-month-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the October 2024 high of $35.80. The next downside price objective for the bears is closing prices below solid support at $33.165. First resistance is seen at $35.00 and then at the March high of $35.495. Next support is seen at this week’s low of $34.165 and then at $34.00
Posted by:
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com