(Kitco News) - Gold and silver prices are solidly higher in early U.S. trading Friday, with gold scoring a nearly three-month high and closing in on its record highs. Comments from U.S. President Trump that appeared to have a less harsh tone on China-U.S. trade relations helped to boost the precious metals, while pressuring the U.S. dollar index. February gold was last up $22.40 at $2,787.40. March silver was up $0.568 at $31.41.
The marketplace was somewhat assuaged overnight after President Trump appeared to soften his approach toward China, saying in an interview with Fox News he would “rather not” use trade tariffs. Asian stocks rallied and the U.S. dollar index weakened.
Bloomberg reported today: “Wall Street optimism abounds that Trump — who famously cited rising share prices as a scorecard on his governance in the first term — will refrain from implementing the most aggressive aspects of his policy agenda, an agenda that has stoked fears about the inflationary outlook and the nation’s finances.”
Added Bloomberg: “It’s a gamble, of course, with fresh Trump fireworks expected next week, in an already jam-packed trading period thanks to the Fed policy gathering and the start of the big tech earnings season.” Trump in a speech Thursday said he would “demand” that the Fed lower interest rates immediately.
Asian and European shares were mixed but mostly higher overnight. U.S. stock indexes are set to open slightly lower when the New York day session begins. The U.S. indexes are pausing after two weeks of solid gains that have index prices back near record highs.
In other overnight news, the Bank of Japan raised its key interest rate to a 17-year high and took a more positive view on rising inflation, fueling expectations for more BOJ rate hikes to support the Japanese yen.
The key outside markets today see the U.S. dollar index solidly lower and hitting a five-week low. Nymex crude oil futures prices are slightly up and trading around $75.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.62%.
U.S. economic data due for release Friday includes the U.S. flash manufacturing and services purchasing managers indexes (PMIs), existing home sales, and the University of Michigan consumer sentiment survey.
Technically, February gold futures bulls have the solid overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,826.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,700.00. First resistance is seen at $2,790.00 and then at $2,800.00. First support is seen at the overnight low of $2,761.00 and then at $2,750.00. Wyckoff's Market Rating: 8.0.
March silver futures bulls have the overall near-term technical advantage. Prices are trending up on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the December high of $33.33. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at this week’s high of $31.71 and then at $32.00. Next support is seen at $31.00 and then at this week’s low of $30.465. Wyckoff's Market Rating: 6.0.
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