Gold Hits 6-Yr. High; Bulls Keep Foot On The Gas
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(Kitco News) - Gold prices are posting strong gains and hit a six-year high in midday trading Monday. Safe-haven demand amid heightened geopolitical events is keeping gold prices on the rise. So is a slumping U.S. dollar index that hit a three-month low today. And while we’re at it, let’s add to the bullish mix recent easy-leaning monetary policies of the world’s major central banks and the bullish technical chart posture for the yellow metal. August gold futures were last up $18.20 an ounce at 1,418.30. July Comex silver prices were last up $0.095 at $15.385 an ounce.
The U.S.-Iran confrontation in the Persian Gulf region continues to simmer on the front burner of the marketplace. News over the weekend surfaced that the U.S. last week employed a cyber-attack on Iran, specifically its ability to track big ships at sea, and to launch missiles. Also, President Trump today said there will be “major” new sanctions put in Iran this week. He also called Iran the world’s number-one sponsor of terrorism. Gold prices pushed to their daily highs immediately following trumps comments.
This situation is likely to hang around the marketplace for a while, which is bullish for the safe-haven metals.
The key “outside markets” today see Nymex crude oil prices near steady and trading a bit above $57.00 a barrel. Meantime, the U.S. dollar index is weaker and hit a three-month low today.
U.S. President Trump and Chinese President Xi are scheduled to meet in Japan at the G20 meetings late this week and discuss their ongoing trade war. The outcome of that meeting could have huge implications for markets, especially if an agreement is reached to end the trade war.
Technically, August gold futures prices closed near the daily high today. The bulls have the solid overall near-term technical advantage and gained more power today. Prices are in an accelerating four-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,450.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,375.00. First resistance is seen at today’s high of $1,421.00 and then at $1,425.00. First support is seen at today’s low of $1,403.60 and then at $1,400.00. Wyckoff's Market Rating: 8.5
July silver futures prices closed near mid-range today. Prices Friday hit an 11-week high. The silver bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the March high of $15.73 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.75. First resistance is seen at last week’s high of $15.555 and then at $15.73. Next support is seen at $15.25 and then at $15.15. Wyckoff's Market Rating: 6.0.
July N.Y. copper closed up 20 points at 270.65 cents today. Prices closed near the session high today. The copper bears have the overall near-term technical advantage. However, recent price action suggests a market bottom is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 285.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the June low of 259.95 cents. First resistance is seen at last week’s high of 273.75 cents and then at 275.00 cents. First support is seen at today’s low of 268.00 cents and then at 264.35 cents. Wyckoff's Market Rating: 3.5.