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(Kitco News) - Gold prices are sharply lower in early U.S. trading Thursday, despite keen risk aversion in the general marketplace. Worries about slowing global economic growth are on the rise today, after already being elevated, amid new U.S. tariff levies. With the marketplace un-nerved at present, for many traders it’s a case of “if you can’t sell what you want, you sell what you can.” That’s likely what’s causing safe-haven gold and silver markets to sell off, despite the risk-off general marketplace. June gold was last down $48.70 at $3,117.50. May silver prices were last up $1.885 at $32.75.
Asian and European stock markets were mostly solidly lower in overnight trading. U.S. stock indexes are pointed to sharply lower and multi-month low openings today in New York. Risk aversion is very keen after the highly anticipated U.S. tariff news announced Wednesday afternoon. President Trump announced reciprocal trade tariffs on more than 180 countries that are due to go into effect later this month. A 10% tariff would apply to nearly all U.S. imports from April 5. Many countries are likely to retaliate against the U.S. with their own new tariffs.
Said David Morrison with Trade Nation today in an email dispatch: “Markets reacted violently overnight as President Trump imposed sweeping reciprocal tariffs. …The tariff announcement sent shockwaves through financial markets, with traders scrambling to assess the implications. Confusion and uncertainty now dominate sentiment as fears of a full-scale global trade war become a reality. Retaliatory measures from major economies are now widely expected, adding fuel to the fire.”
The Japanese yen and Swiss franc are seeing safe-haven buying today.
The key outside markets today see the U.S. dollar index sharply lower and at a six-month low. Nymex crude oil futures prices are sharply down and trading around $67.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.051%. U.S. Treasuries are benefitting from flight-to-quality buying of U.S. debt amid the roiled marketplace.
The new U.S. tariffs matter has overshadowed Friday’s March U.S. employment report from the Labor Department. The key non-farm payrolls figure is seen coming in up 140,000 compared to a rise of 151,000 in the February report.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, U.S. international trade report, the U.S. services purchasing managers index (PMI), the ISM report on business services, and the global services PMI.
Technically, June gold futures bulls still have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $3,201.60. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,031.00. First resistance is seen at $3,150.00 and then at $3,177.00. First support is seen at the overnight low of $3,109.50 and then at $3,100.00. Wyckoff's Market Rating: 8.5.
May silver futures bulls still have the slight overall near-term technical advantage but are now fading. A three-month-old uptrend on the daily bar chart has been negated. 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 the February low of $31.365. First resistance is seen at $33.00 and then at $33.50. Next support is seen at $32.50 and then at $32.215. Wyckoff's Market Rating: 5.5.
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