(Kitco News) - Gold prices are slightly weaker in early U.S. trading Wednesday, on some modest profit-taking pressure following strong gains posted earlier this week. Silver prices are higher as the bulls have regained momentum in that market. Safe-haven demand amid elevated geopolitical tensions and amid a sharp drop in the U.S. dollar index this week are keeping a floor under gold prices. April gold was last down $3.20 at $2,917.40. May silver prices were last up $0.414 at $32.795.
Gold market bulls got no traction this morning following the release of a much-weaker-than-expected ADP national employment report that showed a rise of only 77,000 jobs in February, compared to market expectations for a rise of 148,000. The ADP report is a precursor to Friday morning’s important monthly U.S. employment situation report for February from the Labor Department.
Asian and European stock markets were mostly higher overnight. U.S. stock indexes are pointed to higher openings when the New York day session begins. Overseas markets and U.S. stock indexes were lifted in part by U.S. Commerce Secretary Howard Lutnick suggesting there could be some wriggle room on the new U.S. trade tariffs.
In other overnight news, Chinese lawmakers have begun their annual meeting of the National People's Congress and kicked things off by reaffirming the goal of 5% Chinese economic growth for 2025. Reads a Wall Street Journal headline today: “Trump turns up the heat; China says bring it on.”
U.S. President Donald Trump said Tuesday evening in a speech to Congress that Ukrainian President Volodymyr Zelenskyy had written to him to say he appreciates U.S. support for his country in its war with Russia and is ready to sign a deal on its mineral rights to the U.S.
The Eurozone January producer price index came in hotter than expected, at up 0.8%, month-on-month and up 1.8%, year-on-year.
The key outside markets today see the U.S. dollar index solidly lower again and hit a three-month low. Nymex crude oil futures prices are lower and trading around $67.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.24%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, the U.S. services purchasing managers index (PMI), the ISM report on business services, manufacturers’ shipments and inventories, the global services PMI, the Federal Reserve beige book and the weekly DOE liquid energy stocks report.
Technically, April gold futures bulls have a solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,974.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $2,844.10. First resistance is seen at the overnight high of $2,933.70 and then at this week’s high of $2,939.80. First support is seen at $2,900.00 and then at Tuesday’s low of $2,892.50. Wyckoff's Market Rating: 8.0.
May silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $34.56. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at the overnight high of $33.015 and then at $33.50. Next support is seen at the overnight low of $32.395 and then at $32.00. Wyckoff's Market Rating: 5.5.
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