(Kitco News) - Gold and silver prices are sharply higher near midday Tuesday, with spot gold and nearby Comex gold futures scoring record highs. Silver prices notched a 14-year high today. Safe-haven demand is featured as the turbulent month of September is off to a rocky start amid uncertainty regarding the legality of U.S. tariffs. December gold was last up $61.40 at $3,577.20. December silver prices were up $0.862 at $41.58.
Safe-haven demand is seen for the two precious metals as the prospect of Federal Reserve rate cuts and growing concerns over the U.S. central bank’s independence propel the two precious metals. Gold has risen more than 30% this year, making it one of the best-performing major commodities. Spot gold traded as high of $3,508.00 an ounce today. Nearby silver futures hit a high of $41.34 an ounce. Silver is up by more than 40% so far this year.
Global stock markets were mostly lower overnight. U.S. stock indexes are solidly lower near midday.
Last Friday’s U.S. appeals court ruling that said most U.S. tariffs are illegal has injected uncertainty into the marketplace to start the U.S. holiday-shortened trading week, and into President Trump’s authority to impose the import duties. The judges ruled 7-4 that sweeping U.S. global tariffs exceeded the authority granted under the 1977 International Emergency Economic Powers Act (IEEPA). The Federal Circuit said Congress never delegated the power to impose tariffs through IEEPA, calling the policy an “unheralded” and “transformative” overreach. The appeals judges let the levies stay in place while the case proceeds, but it threatens to freeze corporate investment decisions until the cost of tariffs are clearer. Bond yields are on the rise early this week, along with the sell offs in equities markets. September is historically the worst-performing month for the U.S. stock market.
The key outside markets today see the U.S. dollar index higher, with crude oil prices higher and trading around $65.50 a barrel. The yield on the U.S. Treasury 10-year note is presently 4.27 percent.
Technically, December 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 $3,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,400.00. First resistance is seen at the contract high of $3,585.80 and then at $3,600.00. First support is seen at $3,550.00 and then at $3,500.00. Wyckoff's Market Rating: 8.5.
December silver futures bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $45.00. The next downside price objective for the bears is closing prices below solid support at $38.00. First resistance is seen at $42.00 and then at $42.50. Next support is seen at $41.00 and then at $40.50. Wyckoff's Market Rating: 8.5.
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