(Kitco News) - Gold prices are posting good gains and hit a record high in midday Comex futures trading. Uncertainty among traders and investors is high ahead of this afternoon’s new U.S. trade tariff levies from the Trump administration—and how other countries will react. June gold was last up $26.60 at $3,172.80. May silver prices were last up $0.431 at $34.735.
Bloomberg estimates that up to $33 trillion in global trade is under risk with countries from Brazil to China facing between a 4% and 90% drop in their exports to the U.S. Bloomberg’s global trade policy uncertainty index soared to the highest level since records began in 2009. Bloomberg Economics analysis suggests that in the worst-case scenario measures would add up to 28 percent to average US tariff rates, dropping 4 percent from U.S. GDP and lifting prices by around 2.5%.
U.S. stock indexes are higher near midday, suggesting stock traders have already factored into prices the bearish stock market aspects of new U.S. tariffs.
Respected broker SP Angel today reports marketplace “focus is also on the China yuan devaluation, which may be rolled out to counter a trade war with the U.S., with previous episodes noted in 2005 and 2015. China is likely to lower rates this year to support their ailing economy.”
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil futures prices are firmer and trading around $71.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.2%.
Technically, June gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,200.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,031.00. First resistance is seen at $3,185.00 and then at $3,200.00. First support is seen at the overnight low of $3,135.70 and then at this week’s low of $3,112.40. Wyckoff's Market Rating: 9.5.
May silver futures bulls have the solid overall near-term technical advantage. Prices are in a choppy, three-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October 2024 high of $35.80. The next downside price objective for the bears is closing prices below solid support at $33.165. First resistance is seen at $35.00 and then at the March high of $35.495. Next support is seen at this week’s low of $34.165 and then at $34.00. Wyckoff's Market Rating: 7.5.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
