(Kitco News) - Gold and silver prices are sharply lower in early U.S. trading today, pressured by solid gains in the U.S. dollar index and an uptick in U.S. Treasury yields. Once again, gold and silver bulls are frustrated their markets cannot catch safe-haven bids amid keen risk aversion in the marketplace that sees crude oil prices sharply higher. June gold was last down $176.10 at $4,637.70. May silver prices were down $5.09 at $70.97.
Latest on the war in Iran…
--Trump says U.S. will hit Iran “extremely hard” in next two to three weeks
--Core U.S. goals in Iran “are nearing completion,” Trump says in national address
--U.S. will hit Iran’s electric plants if there is no deal: Trump
--Iran and Israel continue to trade strikes as hopes for end to war fade
--News reports say Iran not willing to negotiate with U.S.
--Crude oil prices sharply up; global stock markets sell off
--U.S. Treasury yields rise as inflation worries resurface
--U.S. and Israeli attacks batter Iran’s civilian Infrastructure
--Gold plunges as Trump gives mixed signals on Iran war resolution
“President Trump sought Wednesday evening to explain his rationale for the war against Iran at a pivotal moment at home and abroad, but he offered few new details,” said the Associated Press. “Notably missing from Trump’s primetime address was his oft-repeated assertion that negotiations with Iran were underway. He softened his rhetoric against NATO allies and did not indicate he was preparing to send in ground troops, particularly to retrieve Iran’s enriched uranium,” said the AP.
U.S. markets closed for Good Friday holiday, but jobs report will be released… All U.S. stock, financial and commodity markets will be closed on Friday for the Good Friday Easter holiday. However, the U.S. Labor Department will release its Employment Situation Report for March. The key non-farm payrolls number is forecast to come in at up around 60,000 workers, which compares to a decline of 92,000 workers in the February report. The overall U.S. unemployment rate is forecast at 4.4% in March, unchanged from the February report.
U.S. set to roll out new tariffs on steel, aluminum imports… The Trump administration is preparing to outline a tiered system for its broad tariffs on steel and aluminum products to simplify a process that has affected American companies, Bloomberg reports. The U.S. will maintain 50% tariffs on a large number of derivative products, while many other products will be tariffed at a lower 25% rate, and some products will fall below that duty level. The administration is shifting the tariffs from content to the full value of the imported product, with certain items incurring a 50% duty and others getting a 25% tariff, according to people familiar with the matter, said Bloomberg.
The key outside markets see Nymex WTI crude oil sharply higher, at a three-week high and trading around $108.00 a barrel. The U.S. dollar index is solidly higher early today. The yield on the benchmark 10-year U.S. Treasury note is presently 4.38 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 $5,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,300.00. First resistance is seen at $4,700.00 and then at $4,750.00. First support is seen at $4,600.00 and then at the overnight low of $4,580.40. Wyckoff's Market Rating: 5.0.
May silver futures bulls’ 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 the March low of $61.21. First resistance is seen at $72.50 and then at $75.00. Next support is seen at $70.00 and then at this week’s low of $67.70. Wyckoff's Market Rating: 5.0.
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