(Kitco News) - Gold and silver prices are higher in midday U.S. trading Tuesday, with gold notching new record highs. Silver hit a seven-week high today. Some early selling pressure was met with bulls actively buying the dips on bargain hunting. A sharply lower U.S. dollar index and some more safe-haven demand boosted the two precious metals today. April gold was last up $12.30 at $2,869.80. March silver was up $0.464 at $32.995.
While President Trump agreed to delay for one month his threatened trade tariffs against Mexico and Canada after speaking with Mexican President Sheinbaum and Canadian Prime Minister Trudeau, new U.S. tariffs against China did kick in Tuesday. China immediately retaliated with its own selected tariffs and an announced probe of Google.
“The (stock) markets are not priced for escalating trade war risk, and if Trump’s ultimate strategy is to ‘escalate to de-escalate,’ investors should expect more volatility and pullbacks in the near term,” said Jason Draho, head of asset allocation Americas at UBS Global Wealth Management, in a Bloomberg email dispatch.
Traders and investors are likely to remain anxious as potentially disruptive Trump administration policies continue to be rolled out.
The key outside markets today see the U.S. dollar index sharply lower. Nymex crude oil futures prices are a bit lower and trading around $73.00 a barrel. Said Bloomberg today: “Oil wiped out all of its gains for the year as the trade war threatens global growth and energy demand.” The yield on the benchmark 10-year U.S. Treasury note is presently at 4.531%.
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 today’s contract high of $2,874.50 and then at $2,900.00. First support is seen at $2,850 and then at today’s low of $2,837.40. 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 $34.00. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at the December high of $33.33 and then at $33.50. Next support is seen at $32.50 and then at today’s low of $32.225. Wyckoff's Market Rating: 6.5.
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