(Kitco News) - Gold and silver prices are higher in early U.S. trading Monday, on safe-haven demand in an apparent delayed reaction to the steep U.S. stock market sell off Monday. Gold is scoring gains today despite a solidly higher U.S. dollar index and a rise in U.S. Treasury yields on this day. It also appears precious metals traders think the steep declines in equities may not be over yet. February gold was last up $12.70 at $2,751.10. March silver was up $0.241 at $30.655.
Asian and European shares were mixed overnight. U.S. stock indexes are set to open narrowly mixed when the New York day session begins, following Monday’s rout that was led by a slump in the technology sector. 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 begins 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 firmer and trading around $73.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.565%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, durable goods orders, the monthly house price index, the S&P Core Logic home price indexes, the consumer confidence index and the Richmond Fed business survey.
Technically, February gold futures bulls have the firm 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 $2,761.30 and then at this week’s high of $2,778.10. 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: 7.0.
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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