Gold, silver bulls on a rampage - Kitco NEWS

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(Kitco News) - Gold and silver prices are again sharply higher in early U.S. trading Wednesday. Gold prices have pushed to a nearly nine-year high, while silver is strongly up again today and hit a 6.5-year high. The feature in the global marketplace at mid-week is the gold and silver markets. Gold is now not far below the record high of $1,920.70 scored in 2011, basis Comex futures. Safe-haven demand, technical buying, a weaker U.S. dollar index, rising crude oil prices, and increasing consumer demand from China and possibly India are all fueling the bull runs in the two precious metals markets. August gold futures were last up $9.70 an ounce at $1,853.70. September Comex silver prices were last up $1.135 at $22.91 an ounce.

Global stock markets were mostly lower in overnight trading. The U.S. stock indexes are pointed toward lower openings when the New York day session begins. Traders and investors are more risk averse at mid-week.

China-U.S. relations continue to erode after the U.S. abruptly closed the Chinese consulate in Houston, Texas. China called the U.S. move an “unprecedented escalation” in U.S-China tensions.

President Trump has started doing Covid-19 briefings again and on Tuesday said the pandemic in the U.S. will “get worse before it gets better.” Trump also did an about-face by urging Americans to wear masks.

Hopes of another U.S. government financial aid package to Americans coming quickly have faded this week, amid disagreement among legislators on the package’s contents.

The important outside markets today see Nymex crude oil prices weaker and trading around $41.30 a barrel after hitting a 4.5-month high on Tuesday. The U.S. dollar index is lower in early trading and near this week’s 4.5-month low. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.59% level.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the monthly house price index, existing home sales, and the weekly DOE liquid energy stocks story.

Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at the overnight high of $1,866.80 and then at $1,875.00. First support is seen at the overnight low of $1,842.10 and then at $1,829.80. Wyckoff's Market Rating: 9.0.

September silver futures bulls have the strong overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $20.00. First resistance is seen at the overnight high of $23.35 and then at $24.00. Next support is seen at $22.50 and then at $22.00. Wyckoff's Market Rating: 9.5.

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2020-07-22 12:55:00Z
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