(Kitco News) - Gold prices are posting good gains and are near last week’s record highs in early U.S. trading Monday. Safe-haven demand is featured in the yellow metal amid keener marketplace uncertainty in place as the U.S. is set to implement tariffs against its major trading partners on Tuesday. April gold was last up $16.30 at $2,851.30. March silver was up $0.04 at $32.305.
Asian and European shares were mostly lower overnight. U.S. stock indexes are set to open sharply lower when the New York day session begins. President Trump’s first round of promised tariffs will kick in Tuesday against Canada, Mexico and China. That’s prompting keen marketplace anxiety that is rattling the stock and financial markets, including Bitcoin.
Said a Bloomberg email dispatch today: “The most extensive act of protectionism by a U.S. president in almost a century” will see a first round of price increases that will ricochet through American households, raising prices for items including vegetables, fruits and cars. Models used by the Federal Reserve to estimate tariff impacts in Trump’s first term suggest this could knock 1.2% off GDP and add around 0.7% to core inflation.
The Canadian dollar overnight sank to its weakest level against the U.S. dollar since 2003. Crypto currencies were also hammered as Ether plunged 11% in a move away from risk assets. “Just another manic Monday,” reads a Bloomberg headline.
The key outside markets today see the U.S. dollar index sharply higher. Nymex crude oil futures prices are solidly higher and trading around $74.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.55%.
U.S. economic data due for release Monday includes the U.S. manufacturing purchasing managers index (PMI), the ISM report on manufacturing PMI, construction spending, the global manufacturing PMI, and domestic auto industry sales.
Technically, April gold futures bulls have the strong 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 $2,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $2,760.20. First resistance is seen at the contract high of $2,862.90 and then at $2,875.00. First support is seen at $2,822.10 and then at $2,800.00. Wyckoff's Market Rating: 9.0.
March silver futures bulls have the overall near-term technical advantage amid a price uptrend in place 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 the overnight high of $32.605 and then at $33.00. Next support is seen at $32.00 and then at the overnight low of $31.61. Wyckoff's Market Rating: 6.5.
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