(Kitco News) - Gold prices are higher but well down from overnight highs that saw December gold hit a three-month peak, amid reports the U.S. is putting levies on gold bars. Silver prices are also firmer and hit a more-than-two-week high overnight. December gold was last up $19.30 at $3,473.30. September silver prices were last up $0.216 at $38.51.
A U.S. move to put tariffs on imports of one-kilogram and 100-ounce gold bars is prompting keen uncertainty the global bullion market and threatening to disrupt trade from Switzerland and other major refining hubs, including London and Hong Kong. The U.S. Customs and Border Protection agency has clarified that the gold bars face tariffs and are not exempted as the industry had initially understood, as reported by Bloomberg and first reported by the Financial Times. Traders, analysts and market watchers are trying to understand the ramifications of the U.S. tariffs on bullion. Switzerland’s gold exports have become a flashpoint in its trade negotiations with the U.S., after a surge in shipments earlier this year caused the U.S.’s trade deficit with Switzerland to spike. “Traders and analysts are scrambling to understand the situation — whether the tariffs are already in force, if they apply to all countries, or even how they might be avoided. Some questioned whether the dramatic change could be an error on the CBP’s part and suggested it may be subject to legal challenges,” said the Bloomberg report.
European and Asian stock markets were mixed in overnight trading. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.
In other overnight news, Bloomberg reports President Trump’s advisers are impressed with Federal Reserve Governor Christopher Waller's willingness to move on policy based on forecasting and his deep knowledge of the Federal Reserve system. Waller, along with Kevin Warsh and Kevin Hassett, is a top candidate to serve as the central bank's chair, according to Bloomberg. White House Spokesman Kush Desai said that "President Trump will continue to nominate the most competent and experienced individuals" for personnel decisions, but any discussion about them should be regarded as speculation unless it comes from Trump himself. Meantime, Trump said he has chosen Council of Economic Advisers Chairman Stephen Miran to fill the seat of Fed Governor Adriana Kugler, but only until January.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures are slightly up and trading around $64.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.25%.
There is no major U.S. economic data due for release Friday.
Technically, December 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 contract high of $3,585.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $3,319.20. First resistance is seen at $3,500.00 and then at today’s high of $3,534.10. First support is seen at $3,450.00 and then at $3,430.00. Wyckoff's Market Rating: 7.5.
September silver futures bulls have the solid overall near-term technical advantage and have regained momentum. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $39.91. The next downside price objective for the bears is closing prices below solid support at the July low of $36.28. First resistance is seen at the overnight high of $38.875 and then at $39.00. Next support is seen at $38.00 and then at $37.50. 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
