By Jim Wyckoff
Gold prices are higher and have hit new record highs in midday U.S. trading Monday. Safe-haven demand is featured in the yellow metal amid keener marketplace uncertainty as the U.S. may soon implement tariffs against its major trading partners. April gold was last up $17.40 at $2,852.10. March silver was up $0.14 at $32.41.
Gold did back down from its daily high at mid-morning on news that U.S. trade tariffs against Mexico, which were set to go into effect Tuesday, have been delayed by one month so the U.S. and Mexico can negotiate more. Canada has vowed retaliation and as of this writing the new U.S. trade tariffs against that nation and against China were set to go into effect Tuesday.
The Canadian dollar overnight sank to its weakest level against the U.S. dollar since 2003.
U.S. stock indexes are lower at midday but up from daily lows on the news of delayed tariffs against Mexico.
The key outside markets today see the U.S. dollar index higher but down from its daily highs. Nymex crude oil futures prices are slightly up after trading solidly higher earlier, and are now trading around $72.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.55%.
Technically, April gold futures bulls have the strong overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $2,760.20. First resistance is seen at today’s contract high of $2,872.00 and then at $2,885.00. First support is seen at $2,822.10 and then at $2,800.00. Wyckoff’s Market Rating: 9.5.
March silver futures bulls have the overall near-term technical advantage amid a price uptrend in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the December high of $33.33. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at last week’s high of $32.92 and then at $33.00. Next support is seen at $32.00 and then at the overnight low of $31.61. Wyckoff’s Market Rating: 6.5.
By Jim Wyckoff
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