(Kitco News) - Gold prices are lower in early U.S. trading Tuesday, on some routine profit-taking pressure from the shorter-term futures traders after hitting a three-week high overnight. Silver prices are higher on safe-haven demand. April gold was last down $45.20 at $5,181.00. March silver prices were up $0.982 at $87.55.
EU says new U.S. tariffs break trade deal. A European Union assessment found that President Trump’s new tariff policy will increase levies on some of the EU’s exports, including cheese and some agricultural products, above the level permitted in their trade agreement, Bloomberg reported. “The European Commission, which handles trade matters for the bloc, told lawmakers Monday that the new global tariff will be added to levies that are already in place, according to Bernd Lange, chair of the European Parliament’s trade committee. The new cumulative rate means some goods would be above the 15% ceiling the EU and US agreed to in their trade deal,” said the report. Meanwhile, The U.S. is preparing to launch investigations into the impact of imports on various products, including batteries and industrial chemicals, under Section 232 of the Trade Expansion Act of 1962. “The administration plans to impose new tariffs based on national security concerns, as the president can impose levies under Section 232 authority. The U.S. Trade Representative said the president will also initiate probes under Section 301 of the Trade Act of 1974 to counter discriminatory actions by trading partners, covering areas such as industrial excess capacity and digital services taxes,” said Bloomberg. Trump’s new 10% global tariffs went into effect today, kicking off an effort to preserve his trade agenda after the court decision. The White House is working on a formal order that will increase the global tariff rate to 15%, according to an administration official.
Cargo volumes into U.S. may spike: Port of Los Angeles director. The U.S. Supreme Court’s decision to strike down President Trump’s sweeping tariffs may drive up cargo volume, Port of Los Angeles Executive Director Eugene Seroka said and as reported by Bloomberg. “If that effective tariff rate for some companies and importers is lower, we may see some cargo really shoot through the system pretty quickly,” he said in a Bloomberg Television interview. While import patterns have fluctuated based on trade policy announcements, exports have consistently suffered, with shipments to China dramatically reduced. The head of the nation’s busiest container gateway cited an 80% drop in soybean shipments from his port, adding that exports have declined in nine of the last 13 months.
U.S. State-of-the-Union address tonight. President Trump will use tonight’s State-of-the-Union speech to champion his immigration crackdowns, his slashing of the federal government, his push to preserve widespread tariffs that the Supreme Court just struck down and his ability to direct quick-hit military actions around the world, including in Iran and Venezuela, The Associated Press says. “The Republican hopes he can convince increasingly wary Americans that his policies have improved their lives while ensuring that the U.S. economy is stronger than many believe — and that they should vote for more of the same in November. The balancing act of celebrating his whirlwind first year back in the White House while making a convincing case for his party in midterm races where he personally won’t be on the ballot is a tall order for any president. But it could prove especially delicate for Trump, given how happy he is to veer off script and ignore carefully crafted messaging,” said the AP.
JPMorgan chief sees parallels to era just before 2008 financial crisis. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, when asked about fierce competition across the financial industry, said he’s starting to see parallels to the era before the 2008 financial crisis, when a rush to make loans ended disastrously. “Unfortunately, we did see this in ’05, ’06 and ’07, almost the same thing — the rising tide was lifting all boats, everyone was making a lot of money,” Dimon told investors on Monday and as reported by Bloomberg. While JPMorgan isn’t willing to make riskier loans to boost net interest income, he said, “I see a couple people doing some dumb things. They’re just doing dumb things to create NII.” Dimon, who led the largest U.S. bank through the 2008 financial crisis and scooped up two major competitors that collapsed, said he expects the credit cycle will eventually sour again — though he is not sure when.
China keeps its monetary policy steady. The People’s Bank of China left its benchmark lending rates unchanged for a ninth consecutive month in February, in line with market expectations and signaling policymakers are not rushing to introduce broad monetary easing after recent targeted measures. The one-year loan prime rate (LPR) was held at 3.0%, while the five-year LPR, the benchmark for mortgage rates, remained at 3.5%. The steady decision comes as authorities balance growth support with financial stability risks. China met its roughly 5% growth target in 2025 on strong exports, but structural imbalances, trade frictions, and rising geopolitical uncertainty continue to cloud the outlook. TradingEconomics.com
The key outside markets today see the U.S. dollar index firmer, with crude oil prices near steady and trading around $66.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.037 percent.
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.
April gold futures bulls’ next upside price objective is to produce a close above solid resistance at $5,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,854.20. First resistance is seen at the overnight high of $5,269.40 and then at $5,300.00. First support is seen at this week’s low of $5,120.40 and then at $5,100.00. Wyckoff's Market Rating: 7.0.
March silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $90.00. The next downside price objective for the bears is closing prices below solid support at the February low of $71.815. First resistance is seen at this week’s high of $88.66 and then at $90.00. Next support is seen at this week’s low of $84.56 and then at $83.00. Wyckoff's Market Rating: 6.0.
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