Gold, Silver Lifted By Lower US Dollar Index Dip In Bond Yields, Trump Uncertainty

(January 21, 2025 - Jim Wyckoff, Kitco News)

(Kitco News) - Gold and silver prices are higher in midday U.S. trading Tuesday, with February gold hitting a 2.5-month high, boosted by a sharp drop in the U.S. dollar index and a dip in U.S. Treasury yields to start the U.S. holiday-shortened trading week. There is also some mild safe-haven demand featured amid uncertainty regarding the new policies of President Trump’s administration. February gold was last up $9.30 at $2,758.00. March silver was up $0.344 at $31.48.

The eyes of the world marketplace are on the policy actions of U.S. President Donald Trump, who was sworn into office Monday. Bloomberg reports that “Trump’s policies caused a rollercoaster ride in markets, with traders zeroing in on a warning over currency manipulation. … As markets digest Trump’s plans, JP Morgan has set up a war room to analyze their impact.” Trump said he planned to impose tariffs of as much as 25% on Mexico and Canada products coming to the U.S. by Feb. 1. Trump also promised to speed up American energy development and revoked measures that had blocked drilling in most U.S. coastal waters.

The key outside markets today see the U.S. dollar index sharply lower. Nymex crude oil futures prices are solidly down and are trading around $76.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.574%.

There were no major U.S. economic data releases Tuesday.

Technically, February gold futures bulls have the firm 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 $2,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,675.00. First resistance is seen at $2,775.00 and then at $2,800.00. First support is seen at $2,735.00 and then at today’s low of $2,715.60. Wyckoff's Market Rating: 7.5.

March silver futures bulls have the overall near-term technical advantage. Prices are trending up 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 $32.00 and then at $32.50. Next support is seen at $31.00 and then at the overnight low of $30.77. Wyckoff's Market Rating: 6.0

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