(Kitco News) - Gold prices are sharply higher and December gold hit a record peak of $4,235.80. Silver prices are also sharply up today. Safe-haven demand and technical buying are featured at mid-week. December gold was last up $53.60 at $4,217.00. December silver prices were up $0.893 at $51.53.
Both metals are seeing safe-haven demand amid heightened U.S.-China trade tensions and the uncertainty of the U.S. government shutdown. The silver market is seeing a “short squeeze” amid very short supplies of the metal in London driving prices there significantly above those seen in New York. JP Morgan chief Jamie Dimon was asked about owning gold. “I’m not a gold buyer — it costs 4% to own it,” Dimon said Tuesday at Fortune’s Most Powerful Women conference in Washington. “It could easily go to $5,000, $10,000 in environments like this. This is one of the few times in my life it’s semi-rational to have some in your portfolio,” he said and as reported by Bloomberg.
Federal Reserve Chairman Jerome Powell on Tuesday also leaned easy on U.S. monetary policy, which is price-friendly for the precious metals. He said in a speech to an economics group that the Fed is on track to deliver another quarter-point interest-rate cut later this month. He pointed to the low pace of hiring and said the job sector may weaken further, adding that further declines in job openings might show up in the unemployment rate. The Fed is scheduled to meet Oct. 28-29. Powell said he and his colleagues are looking to alternative data sources due to the U.S. government shutdown, which is reducing their read on the U.S. economy.
Global stock markets were mixed to firmer overnight. U.S. stock indexes are pointed to higher openings when the New York day session begins.
China’s consumer prices dropped 0.3%, year-on-year, in September 2025, steeper than market estimates of a 0.1% decline but slightly less than a 0.4% fall in the previous month, according to China’s National Bureau of Statistics Tuesday. Food prices declined further (-4.4% vs -4.3% in August), recording the strongest contraction since January 2024, amid broad-based declines across categories, with pork prices down further due to abundant supply ahead of the Golden Week holidays, lower production costs, and weak demand. Core inflation, which excludes food and energy, rose 1.0%, year-on-year, the highest in 19 months, after August's 0.9% gain. On a monthly basis, the CPI inched up 0.1%, missing forecasts of 0.2% after remaining flat in August. China’s economy has been showing some stress cracks, which likely gives the U.S. better leverage in their current trade negotiations.
The key outside markets today see the U.S. dollar index weaker. Crude oil prices are near steady and trading around $58.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.011%.
Technically, December gold futures bulls have the strong overall near-term technical advantage but may be getting near-term exhausted. Bulls’ next upside price objective is to produce a close above solid resistance at $4,300.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,000.00. First resistance is seen at the overnight record high of $4,235.80 and then at $4,250.00. First support is seen at the overnight low of $4,157.30 and then at $4,100.00. Wyckoff's Market Rating: 9.5.
December silver futures bulls have the solid overall near-term technical advantage but now appear exhausted. Silver bulls' next upside price objective is closing prices above solid technical resistance at $55.00. The next downside price objective for the bears is closing prices below solid support at last week’s low of $46.70. First resistance is seen at the overnight high of $51.88 and then at the record high of $52.495. Next support is seen at the overnight low of $50.31 and then at $50.00. Wyckoff's Market Rating: 9.0.
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