(Kitco News) - Gold and silver prices are solidly higher in midday U.S. trading Tuesday, on safe-haven demand amid wobbly U.S. equities after the steep U.S. stock market sell off Monday. Uncertainty regarding U.S. President Trump’s policy actions in the coming days/weeks is also prompting risk aversion in the marketplace that is benefiting the precious metals. Gold is scoring gains today despite a higher U.S. dollar index and a rise in U.S. Treasury yields on this day. February gold was last up $28.50 at $2,767.00. March silver was up $0.466 at $30.875.
U.S. stock indexes are higher near midday, following Monday’s rout that was led by a slump in the technology sector. Still, many traders/investors question if the stock market tumble was only a one-day event or the start of something more problematic. Reads a Barrons headline today: “DeepSeek shattered the AI trade.”
Said Bloomberg in a morning dispatch Tuesday: “A half-trillion dollar-plus equity wipeout — in a single stock — is difficult to fathom. But that’s what happened with chipmaker Nvidia’s market capitalization on Monday. For some, it instantly reminded of the 2000-01 dot-com bust, when the Nasdaq Composite index tumbled some 72% from peak to trough.”
In other news, President Trump proposed universal tariffs that are “much bigger” than 2.5%, which is a global starting point reportedly favored by U.S. Treasury Secretary Bessent. The tariffs are meant to reshape U.S. supply chains and “protect our country,” said Trump. The U.S. dollar strengthened on Trump’s latest proclamations.
The U.S. data point of the week sees the Federal Reserve widely expected to hold U.S. interest rates steady at the FOMC meeting that began Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chair Jerome Powell. No change in U.S. interest rates is the marketplace consensus. However, the wording and tone of the FOMC statement and Powell presser will be closely parsed by the marketplace.
The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil futures prices are near steady and trading around $73.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.577%.
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 this week’s high of $2,778.10 and then at $2,800.00. First support is seen at the overnight low of $2,737.40 and then at this week’s low of $2,732.00. Wyckoff's Market Rating: 7.5.
March silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.00. The next downside price objective for the bears is closing prices below solid support at the December low of $29.145. First resistance is seen at $31.00 and then at $31.50. Next support is seen at the overnight low of $30.235 and then at $30.00. Wyckoff's Market Rating: 5.0.
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