(Kitco News) - Gold and silver prices are higher in early U.S. trading Thursday. The precious metals markets are seeing buying support on this first trading day of 2025 amid a dip in U.S. Treasury yields and a rally in the crude oil market. However, gains are being limited by a higher U.S. dollar index that hit a more-than-two-year high overnight. February gold was last up $8.80 at $2,649.80 and March silver was up $0.418 at $29.66.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. For the last four years, the first trading day of the new year has been a contrarian indicator, with the S&P 500 ending the year in the opposite direction it moved on the first trading day, according to Jim Reid, Deutsche Bank analyst.
Chinese stocks Thursday posted their worst start to a new year in nearly a decade. Weaker-than-expected manufacturing data and concern about U.S. President Trump imposing new tariffs are bearish elements for China equities. China’s Caixin manufacturing PMI fell to 50.5 in December from 51.5 in November. Economists had been forecasting a small rise to 51.6.
The key outside markets today see the U.S. dollar index higher and hit a more-than-two-year high overnight. Nymex crude oil futures prices are higher and trading around $72.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is on the rise and is presently at 4.54%.
U.S. economic data due for release Thursday includes the weekly MBA mortgage applications survey, the weekly jobless claims report, the U.S. manufacturing purchasing managers index (PMI), the global PMI, construction spending and the weekly DOE liquid energy stocks report.
Technically, February gold futures bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $2,565.00. First resistance is seen at the overnight high of $2,659.90 and then at $2,668.00. First support is seen at the overnight low of $2,636.10 and then at this week’s low of $2,608.40. Wyckoff's Market Rating: 5.5.
March silver futures bears have the overall near-term technical advantage. A nine-week-old downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at the August low of $27.39. First resistance is seen at $30.00 and then at last week’s high of $30.485. Next support is seen at the overnight low of $29.27 and then at the December low of $29.145. Wyckoff's Market Rating: 3.0.
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