(Kitco News) - Gold and silver prices are firmer in early U.S. trading today, on upside price corrections following solid losses Thursday. It’s been a choppy trading week for the two metals, as the bulls and bears are weighing the bullish aspect of safe-haven demand amid the uncertainties of war against the bearish aspect of problematic inflation choking consumer and commercial demand for the metals. April gold was last up $34.40 at $4,410.70. May silver prices were up $0.436 at $68.375.
Latest on the war in Iran.
--Trump delays Iran energy attack deadline by 10 days, claims U.S.-Iran are talking
--Pentagon mulling sending as many as 10,000 more U.S. troops to region: WSJ
--Iran continues drone and missile strikes across Middle East
--Oil rises as traders brace for longer war, European stocks slide, bond yields rise
--Iran says it turned back 3 vessels of different nationalities trying to transit Strait of Hormuz
-- Two Chinese container ships attempt Hormuz exit before U-turning
--Brace for $200 oil If war lasts until June, Macquarie warns
China launches investigations into unfair U.S. trade practices. China started a pair of investigations into U.S. trade practices, retaliating against similar probes by the Trump administration as the superpowers stake out positions before an expected presidential summit in May. “The move, announced by the Ministry of Commerce on Friday, is a direct mirror of steps U.S. President Donald Trump took to revive his tariff agenda after the Supreme Court last month struck down some of his duties,” said a Bloomberg report. “China expresses its strong dissatisfaction and firm opposition to these actions,” a Chinese Commerce Ministry spokesperson said in a statement, referring to the so-called Section 301 investigations initiated on March 11. The Chinese measures come days after the White House said Trump will travel to China in mid-May to meet with President Xi Jinping for a summit delayed by the U.S. conflict with Iran. The world’s two biggest economies have largely stabilized ties after a tariff tit-for-tat last year, although Beijing has signaled its opposition to fresh U.S. actions.
Another Fed official leans hawkish on U.S. monetary policy. Federal Reserve Governor Michael Barr on Thursday said Fed policymakers are well positioned to hold U.S. interest rates steady due to the conflict in the Middle East and other factors complicating their ability to nudge inflation toward the annual 2% target. Barr noted that non-housing services inflation and core inflation are both elevated, and that the impact of tariffs on inflation may continue beyond this year.
The key outside markets see Nymex WTI crude oil prices higher and trading around $97.00 a barrel. The U.S. dollar index is slightly up early today. The yield on the benchmark 10-year U.S. Treasury note is presently 4.45 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.
Technically, April 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 this week’s low of $4,100.00. First resistance is seen at the overnight high of $4,469.30 and then at $4,500.00. First support is seen at the overnight low of $4,369.10 and then at $4,300.00. Wyckoff's Market Rating: 4.0.
May silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $80.00. The next downside price objective for the bears is closing prices below solid support at $60.00. First resistance is seen at the overnight high of $70.43 and then at $72.385. Next support is seen at $66.00 and then at $62.50. Wyckoff's Market Rating: 4.0.
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