Gold Sees Mild Profit-Taking Pressure

(March 26, 2025 - Jim Wyckoff, Kitco News)

(Kitco News) - Gold prices are down a bit in midday U.S. trading Wednesday, on some routine profit taking from the shorter-term futures traders. A firmer U.S. dollar index and an uptick in U.S. Treasury yields at mid-week are negative daily outside-market factors limiting buying interest in gold and silver. Still, a steady stream of safe-haven demand amid a general marketplace that remains skittish is keeping a price floor under the two precious metals. April gold was last down $2.20 at $3,023.70. May silver prices were last up $0.028 at $34.215.

Importantly, the low volatility in the gold market, at elevated levels, suggests prices can continue a steady climb to new highs.

U.S. stock indexes are solidly lower near midday. Still, the recent rebounds in the major U.S. stock indexes begin to suggest market bottoms are in place.

The key outside markets today see the U.S. dollar index modestly up. Nymex crude oil futures prices are firmer and trading around $69.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.334%.

Technically, April 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 $3,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,900.00. First resistance is seen at this week’s high of $3,042.40 and then at $3,050.00. First support is seen at the overnight low of $3,017.80 and then at this week’s low of $3,007.70. Wyckoff's Market Rating: 9.0.

May silver futures bulls have the 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 $32.215. First resistance is seen at $34.56 and then at $35.00. Next support is seen at $34.00 and then at this week’s low of $33.38. Wyckoff's Market Rating: 6.5.