Gold rallies on weaker U.S. data, drop in USDX, Treasury yields

(Kitco News, Wed. June 4th, 2025) – Gold prices are higher just before midday Wednesday, following some weaker U.S. economic data that sunk the U.S. dollar index and pushed U.S. Treasury yields down. Risk appetite in the general marketplace is still far from robust, which is also supported some continued safe-haven buying in gold and silver. August gold was last up $25.40 at $3,402.50. July silver prices were last up $0.022 at $34.66.

This morning’s release of the ADP national employment report for May showed a weak rise of 37,000 jobs, compared to expectations for a rise of 110,000. The ISM services purchasing managers’ index report, released at mid-morning, also came in weaker than expected. President Trump on social media said: “ADP number out! Too-late Powell must now lower the rate.” Gold market bulls want to see lower U.S. interest rates.

U.S. stock indexes are slightly up near midday. The general marketplace is still pensive amid the U.S.-China trade war that presently is showing no signs of letting up. President Trump posted on social media late Tuesday that Chinese President Xi Jinping is “extremely hard to make a deal with.”

Traders and investors are awaiting what is arguably the most important U.S. data point of the month: Friday morning’s May employment situation report from the Labor Department. The key non-farm payrolls number is seen up 125,000 jobs, compared to a rise of 177,000 in the April report.

Technically, August gold futures bulls have the firm overall near-term technical advantage.  Bulls’ next upside price objective is to produce a close above solid resistance at $3,450.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at this week’s high of $3,417.80 and then at $3,450.00. First support is seen at the overnight low of $3,366.90 and then at $3,350.00.

July silver futures bulls have the firm overall near-term technical advantage after seeing a bullish upside “breakout” from a trading range on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the March high of $35.80. The next downside price objective for the bears is closing prices below solid support at last week’s low of $32.80. First resistance is seen at this week’s high of $34.945 and then at $35.00. Next support is seen at Tuesday’s low of $34.165 and then at $34.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com