(Kitco News) - Gold prices are just a bit weaker in early U.S. trading Wednesday, after hitting a five-week high overnight. Silver prices are firmer and hit a nearly 14-year high today. Gold is seeing some mild profit-taking from the shorter-term futures traders. August gold was last down $2.50 at $3,441.30. September silver prices were last up $0.22 at $39.77.
Asian and European stocks were mostly higher overnight. U.S. stock indexes are pointed to firmer openings today in New York. Risk appetite in the general marketplace is keener as the U.S. and Japan announced late Tuesday a trade deal has been reached that will impose 15% tariffs on Japanese imports into the U.S., including automobiles, while Japan will create a $550 billion fund to make investments in the United States. President Trump called the trade deal the “largest ever.”
The Wall Street Journal today reports “the global economy is sailing through this year’s historic increase in tariffs, displaying an unexpected trait: resilience.” The story said businesses and consumers have surprised economists by “their ability to hedge, finding a short-term path through as they await clarity on where tariffs will end up.” according to JP Morgan.
The Euro currency is trading close to its highest level since August of 2021 amid optimism over a potential trade deal between the U.S. and the European Union. Earlier reports said the European Union is preparing countermeasures in case trade talks stall before the Aug. 1 U.S.-imposed trade-deal deadline. Currency traders are also focused on Thursday’s European Central Bank monetary policy decision. The ECB is widely expected to keep its interest rates unchanged after eight consecutive cuts.
The Chinese yuan edged higher to around 7.16 per U.S. dollar Wednesday and hit its highest level in over two weeks as traders monitor developments on U.S.-China trade negotiations. U.S. Treasury Secretary Bessent said Tuesday that U.S. and Chinese officials will meet in Stockholm next week for a third round of high-level talks.
The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil futures are weaker and trading around $65.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.382%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, existing home sales and the weekly DOE liquid energy stocks report.
Technically, August gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $3,476.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,340.00. First resistance is seen at the overnight high of $3,451.70 and then at $3,476.30. First support is seen at $3,425.00 and then at $3,400.00. Wyckoff's Market Rating: 7.5.
September silver futures bulls have the solid overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $36.00. First resistance is seen at $40.00 and then at $40.50. Next support is seen at this week’s low of $38.365 and then at $38.00. Wyckoff's Market Rating: 8.5.
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