Gold, silver prices up amid bullish charts, weaker US dollar
(Kitco News) - Gold prices are moderately higher in early U.S. trading, while the silver market is again sharply higher and hit another two-year high overnight. Bullish technical postures in both metals continue to invite the chart-based buyers to climb on board the long side. A weaker U.S. dollar index is also supportive to the precious metals markets today. December gold futures were last up $4.60 an ounce at 1,541.90. December Comex silver prices were last up $0.295 at $18.075 an ounce.
Asian and European stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward near-steady openings when the New York day session begins. While there is still a bit more trader and investor optimism regarding a U.S.-China trade agreement being reached down the road, it appears President Trump’s comments Monday at the G-7 meeting in France were probably too optimistic, following rhetoric coming out of China.
While traders and investors are may not quite as anxious so far this trading week, there are still elements lingering that could quickly induce a headache for the world marketplace, including civil unrest in Hong Kong, and instability in the Persian Gulf and in Venezuela. The months of September and October are right around the corner, which have been problematic for the stock market in the past. And this year the U.K. is scheduled to leave the European Union (Brexit) in October—so far without a planned departure. Gold and silver markets are continuing to see underlying buying support from the above matters.
In overnight news, another report showed weakening world economic growth, as Germany’s second-quarter gross domestic product was down 0.1%. Germany auctioned is two-year note for a yield of minus 0.89% today, which is a record low.
The key “outside markets” today see Nymex crude oil prices up and trading around $54.25 a barrel. The U.S. dollar index is weaker.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the quarterly and monthly house price indexes, the S&P-Core-Logic house price index, the Richmond Fed business survey, and the consumer confidence index.
Technically, the gold bulls have the solid overall near-term technical advantage. A nearly three-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $1,600.00. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at $1,500.00. First resistance is seen at $1,550.00 and then at 1,560.00. First support is seen at Monday’s low of $1,534.80 and then at $1,525.00. Wyckoff's Market Rating: 8.0.
September silver futures bulls have the solid overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.50. First resistance is seen at the overnight high of $18.11 and then at $18.25. Next support is seen at the overnight low of $17.755 and then at $17.605. Wyckoff's Market Rating: 8.5.