(Kitco News) - Gold prices a bit higher in early U.S. trading and silver prices are soaring and closing in on $100.00 an ounce. Both metals hit new all-time highs overnight. Ongoing safe-haven demand and chart-based buying amid firmly bullish technicals continue to drive the precious metals prices north. February gold was last up $11.10 at $4,924.50. March silver prices were up $2.413 at $98.78.
Japan’s government bond market a bit calmer to end trading week. Japan’s shorter-maturity bond yields rose after the Bank of Japan raised its inflation outlook, while pressure on the long-end continued to ease following a sharp selloff earlier this week. The two-year bond yield rose 2.5 basis points to 1.24%, and the five-year rate climbed 2 basis points to 1.68%. The 40-year bond yield fell 5.5 basis points to 3.94% after reaching its highest since its debut earlier this week on Prime Minister Sanae Takaichi’s election pledge to cut taxes, Bloomberg reported. The BOJ left its policy rate unchanged Friday at 0.75%, while board member Hajime Takata voted for a back-to-back rate hike. In its latest quarterly outlook, the bank revised up four out of six of its inflation projections and reiterated its intention to raise borrowing costs if its outlook materializes.
EU unfreezes trade deal with U.S., plans on vote for ratification. European Union lawmakers are expected to vote on ratifying the bloc’s trade deal with the U.S. after President Trump on Wednesday walked back his latest threat to impose tariffs on European countries. The trade deal's ratification process was suspended after Trump indicated he wanted to acquire Greenland. However, after Trump announced a framework deal with NATO on Greenland and said the U.S. was cancelling new tariffs on EU countries, European Parliament President Roberta Metsola said that reversal was enough to justify voting on the measure, which could have a preliminary vote in the coming days. “This means we can continue with our discussions internally with the EU-U.S. trade deal, which had been paused,” Metsola said Thursday before an emergency meeting of EU leaders. “I’ll be taking it forward with my colleagues to be able to proceed,” she said and as reported by Bloomberg.
New details on U.S.-EU framework on Greenland. The deal between President Trump and NATO Secretary General Mark Rutte paves the way for NATO to beef up security in the Arctic region and fend off any threat from Russia or China, Bloomberg reported. The framework entails the stationing of U.S. missiles, mining rights aimed at keeping Chinese interests out, and a bolstered NATO presence, according to a European official briefed on the talks. The issue of sovereignty was not on the table, with Danish Prime Minister Mette Frederiksen emphasizing that ceding territory to the U.S. is non-negotiable and that any agreement must respect international law and sovereignty, said the Bloomberg report. “We didn’t go into those details at all,” Rutte said. Nor was the issue of an increased U.S. troop presence, although the Danish government has said it’s “completely open” to such a scenario, Rutte said.
U.S. envoys, Putin resume Russia-Ukraine peace talks. Russian President Vladimir Putin began talks with U.S. envoys Steve Witkoff and Jared Kushner in the Kremlin on the latest peace plan aimed at ending his war in Ukraine, Bloomberg reported. Kremlin foreign policy aide Yuri Ushakov and Putin’s envoy Kirill Dmitriev are also attending the talks, according to the presidential administration. Josh Gruenbaum, commissioner of the U.S. General Services Administration’s Federal Acquisition Service, is also taking part, Bloomberg said. U.S. and Ukrainian officials have said they’ve made significant progress on a 20-point plan to end the Russian full-scale invasion that’s lasted almost four years. However, The Kremlin said today the “territorial issue” remains unresolved after Putin held late-night talks with the U.S. envoys. There’s “no hope of achieving a long-term settlement” to the war until Russia’s demands for territory in Ukraine are accepted, Ushakov, said in an audio recording on Telegram early Friday. That’s even as he characterized the almost four hours of negotiations in the Kremlin as “exceptionally substantive, constructive.”
The key outside markets today see crude oil prices higher and trading around $60.50 a barrel. The U.S. dollar index is near steady and the U.S. 10-year Treasury note yield is presently 4.24%.
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 $5,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,539.10. First resistance is seen at the overnight record high of $4,970.00 and then at $5,000.00. First support is seen at $4,900.00 and then at $4,850.00. Wyckoff's Market Rating: 9.5.
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 $85.00. First resistance is seen at the overnight record high of $99.395 and then at $100.00. Next support is seen at the overnight low of $96.22 and then at $95.00. Wyckoff's Market Rating: 10.0.
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