Gold Hits Record High, Backs Off On Routine Profit-Taking

(April 1, 2025 - Jim Wyckoff, Kitco News)

(Kitco News) - Gold prices are lower at midday Tuesday on normal profit-taking pressure from the shorter-term futures traders after hitting record highs early on. gold scored a new all-time high of $3,145.80 an ounce. A rebound in the U.S. stock indexes is also a daily negative for the precious metals markets. gold was last down $30.00 at $3,115.00. Silver prices were last down $0.426 at $33.62

U.S. stock indexes are higher today on corrective bounces in price downtrends. The S&P and Nasdaq indexes just finished their worst quarters since 2022. Risk aversion remains elevated ahead of the Wednesday date for the start of new U.S. tariffs against other countries that trade with the U.S.

Said David Morrison from Trade Nation today in an email dispatch: “Usually, after a disappointing first quarter, investors look forward to better opportunities ahead. But that doesn’t appear to be the case now. Instead, there’s one word which comes up repeatedly when attempting to describe the current trading environment, and that is: uncertain. And the reason for that uncertainty is, of course, Trump’s tariffs. President Trump has promised ‘retaliatory’ tariffs on all U.S. trading partners, along with a 25% levy on U.S. car imports, starting tomorrow. …The trouble is that there have been so many contradictory statements about what this may mean, that markets can’t handicap the outcomes. “

The key outside markets today see the U.S. dollar index slightly up. NyMex crude oil futures prices are near steady and trading around $71.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.16%.

Technically, June gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,200.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,031.00. First resistance is seen at the overnight contract high of $3,177.00 and then at $3,200.00. First support is seen at this week’s low of $3,112.40 and then at $3,100.00.

May silver futures bulls have the firm overall near-term technical advantage. Prices are in a choppy, three-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the October 2024 high of $35.80. The next downside price objective for the bears is closing prices below solid support at $33.165. First resistance is seen at $35.00 and then at the March high of $35.495. Next support is seen at $34.00 and then at $33.50.