(Kitco News) – Gold and silver prices are down in early U.S. trading Friday, on more profit-taking from the shorter-term futures traders. Risk aversion is not keen to end the trading week, but neither is risk appetite. August gold was last down $32.70 at $3,340.80. September silver prices were last down $0.319 at $38.905.
Asian and European stocks were mostly weaker overnight. U.S. stock indexes are pointed to slightly higher openings today in New York.
In overnight news, on Thursday afternoon President Trump visited the Federal Reserve and its building renovations. Trump and Powell bickered on camera over the price of the renovations. Regarding U.S. monetary policy, Trump said, “I just want to see one thing happen, very simple: interest rates have to come down.” However, Trump signaled he’s not keen on firing Powell, saying, “I think he’s going to do the right thing. Everybody knows what the right thing is.”
China’s budget deficit climbed to a fresh record in the first half of 2025, highlighting intensified government efforts to boost domestic demand as President Trump’s tariffs reduce Chinese exports to the U.S. The broad fiscal gap reached 5.25 trillion yuan ($733 billion) in January-June, according to Bloomberg and based on data released by the Chinese Finance Ministry Friday. China’s budget shortfall rose 45% from a year earlier.
Expectations were low going into the European Union’s summit with China in Beijing this week, and they were met. The first in-person meeting between the EU and Chinese leadership since 2003 made little progress in terms of concrete commitments, Bloomberg reports. “EU Commission President Ursula von der Leyen and Council President Antonio Costa pulled no punches on China’s trade practices in their closing press conference, calling out Beijing’s support for Russia amid its invasion of Ukraine, and reiterating their view that the trading relationship is critically unbalanced.” China and the EU did agree on a plan to identify supply chain bottlenecks and endorsed a joint statement on climate, “in one bright spot of unity,” reported Bloomberg.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures are up a bit and trading around $66.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.418%.
U.S. economic data due for release Friday includes durable goods orders.
Technically, August gold futures bulls have the overall near-term technical advantage but are now fading. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $3,451.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at the overnight high of $3,376.60 and then at $3,400.00. First support is seen at $3,325.00 and then at $3,314.30. Wyckoff’s Market Rating: 6.5.
September silver futures bulls have the solid overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $36.00. First resistance is seen at the overnight high of $39.52 and then at $40.00. Next support is seen at this week’s low of $38.365 and then at $38.00. Wyckoff’s Market Rating: 8.0.
Jim Wyckoff has spent over 25 years involved with the stock, financial and commodity markets. He was a financial journalist with the FWN newswire service for many years, including stints as a reporter on the rough-and-tumble commodity futures trading floors in Chicago and New York. As a journalist, he has covered every futures market traded in the U.S., at one time or another.
Jim is the proprietor of the “Jim Wyckoff on the Markets” analytical, educational and trading advisory service. Jim also worked as a technical analyst for Dow Jones Newswires and as the senior market analyst with TraderPlanet.com. Jim is also a consultant with the highly respected “Pro Farmer” agricultural advisory service. Jim was also the head equities analyst at CapitalistEdge.com. He received his degree from Iowa State University in Ames, Iowa, where he studied journalism and economics.
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