(Kitco News) - Gold and silver prices are a bit weaker in early U.S. trading Tuesday, on mild downside corrections following recent gains that saw gold hit a record high on Monday. Some profit taking from the shorter-term futures traders is featured. Still, safe-haven demand amid heightened trader/investor uncertainty will likely continue to keep a floor under the two precious metals. April gold was last down $7.50 at $2,849.60. March silver was down $0.141 at $32.385.
Asian and European shares were mixed overnight. U.S. stock indexes are set to open mixed when the New York day session begins. 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 lower. Nymex crude oil futures prices are lower and trading around $71.75 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 4.583%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the RCM TIPP economic optimism index, manufacturers’ shipments and inventories, and the jobs and labor turnover survey (JOLTS) report.
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 overnight high of $2,858.20 and then at the contract high of $2,872.00. First support is seen at the overnight low of $2,837.40 and then at $2,822.10. 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 this week’s high of $32.745 and then at $33.00. Next support is seen at $32.00 and then at this week’s low of $31.61. Wyckoff's Market Rating: 6.5.
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