(Kitco News) - Gold prices are higher and silver prices are posting strong gains up in early U.S. trading Tuesday, with both hitting new record highs. Silver bulls are now eyeing $100 an ounce. Risk aversion remains elevated in the marketplace amid an active geopolitical environment that includes unrest in China and an aggressive U.S. approach to acquiring Greenland just after taking out the Venezuelan dictator. February gold was last up $45.90 at $4,645.30. March silver prices were up $4.967 at $91.305.
U.S. producer price index on deck. U.S. producer prices are expected to have risen 0.2%, month over month, in November, easing from a 0.3% increase in September, according to delayed data from the Bureau of Labor Statistics to be released today. October figures are also set to be released alongside the November report after the U.S. government shutdown postponed data publication. Core PPI, which excludes food and energy, is likewise forecast to increase 0.2%, compared with a 0.1% gain in September. On an annual basis, headline U.S. producer inflation is projected to hold steady at 2.7%, while core producer inflation is expected to edge up to 2.7% from 2.6% previously. TradingEconomics.com
Death toll in Iran soars as protests sweep the nation. More than 2,500 people have been killed in Iranian protests that have swept the nation, activist groups said and as reported by Bloomberg, as Tehran continued its crackdown despite President Trump’s threat of action over mounting fatalities. The U.S.-based Human Rights Activists News Agency reported 2,571 Iranian deaths as of Wednesday, up from about 500 at the start of the week and amid speculation the actual toll could be dramatically higher. Trump on Tuesday urged Iranian dissidents to continue protesting against the regime of Supreme Leader Ayatollah Ali Khamenei and “take over your institutions if possible,” adding that he would “act accordingly” once he assesses how many demonstrators have been killed. Trump earlier addressed the Iranian people in a Truth Social post, saying “HELP IS ON ITS WAY,” without specifying what he meant.
Blistering metals markets rallies continue, with silver above $90. Metals markets have extended their dramatic rallies early this — with gold, silver, copper and tin all hitting record highs — as investors bet on a boost from more U.S. interest rate cuts and a revival in sentiment across Chinese financial markets. “Commodities have posted eye-watering gains since late 2025 as traders position themselves for a year in which the Federal Reserve is expected to cut borrowing costs further to bolster U.S. growth. That’s aided the case for base metals, while precious metals are also benefiting from renewed attacks on the Fed by the Trump administration and an increasingly tense geopolitical backdrop,” reported Bloomberg. Silver jumped as much as 5.3% to top $90 an ounce for the first time overnight, while gold notched another all-time peak. Tin was the standout among base metals, and was up as much as 6% at one point, while copper also resumed its rally. Many metals are benefiting from prospects for better manufacturing demand, including in growth sectors like artificial intelligence, said the Bloomberg report.
Greenland, Denmark diplomats to meet with Vance, Rubio today. Danish Foreign Minister Lars Lokke Rasmussen and his counterpart from Greenland, Vivian Motzfeldt, will face Vice President Vance and Secretary of State Rubio at the White House today, just hours after the island’s prime minister said that if made to choose, Greenland would opt for Denmark. The Greenland and Denmark diplomats’ goal is to convince the U.S. officials there’s no need to take over Greenland. President Trump has said the U.S. needs Greenland for national defense. The Danes argue that a comprehensive defense agreement dating back to 1951 already allows the U.S. to use the territory as it needs to for defenses — rendering any takeover futile, Bloomberg reported. “Greenland and Denmark appear to have taken two options off the table: a purchase and any rapprochement through independence. Greenlanders have ruled out selling their land regardless of how much money would be offered in exchange for ownership, and secession is on the back burner for now,” said Bloomberg. “A move labeled the off-ramp option would be for Greenland to offer Trump a Ukraine-style minerals deal where the US gets access to the island’s rare earths in exchange for security guarantees. Such an agreement would allow Trump to claim victory without annexation and shift the focus from geopolitics to commercial success,” said the report.
Yen falls to 18-month low against the greenback as Japan officials warn speculators. Japan’s finance minister and its top currency official issued fresh warnings to speculators after the yen weakened to its lowest level against the U.S. dollar in 18 months amid reports of a snap general election in Japan. “We won’t rule out any means and will respond appropriately to moves that are excessive, including those that are speculative,” Satsuki Katayama told reporters on Wednesday and as reported by Bloomberg, in a hint that direct intervention in markets was among the options available. “We’ve mentioned this to the prime minister today as well…. “The kind of sudden moves we saw on Jan. 9 have nothing to do with fundamentals, and are deeply concerning,” she added. Her message was soon backed up by Atsushi Mimura, the ministry’s top official in charge of the yen, who reiterated that no options were being ruled out. While the Bank of Japan has lifted interest rates to their highest level in 30 years and the Federal Reserve has lowered U.S. rates, downward pressure on the yen has continued. Bets against the yen picked up speed after Sanae Takaichi emerged as the leading candidate to become prime minister last October. Takaichi is known for her pro-fiscal and monetary stimulus views. Reports in recent days that she will call an early election in February have fueled further weakness in the yen by reinforcing the view that her expansionary policies will continue.
The key outside markets today see the U.S. dollar index slightly down. Crude oil prices are higher and trading around $62.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.18%.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, February gold futures bulls’ next upside price objective is to produce a close above solid resistance at $4,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,400.00. First resistance is seen at overnight record high of $4,647.60 and then at $4,675.00. First support is seen at today’s low of $4,594.30 and then at $4,550.00. Wyckoff's Market Rating: 8.5.
March silver futures bulls have the strong chart advantage and their next upside price objective is closing prices above solid technical resistance at $100.00. The next downside price objective for the bears is closing prices below solid support at $80.00. First resistance is seen at $92.50 and then at $94.00. Next support is seen at the overnight low of $86.75 and then at $85.00. Wyckoff's Market Rating: 10.0
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