Gold powers to 5-week peak, challenging springtime high
(Kitco News) - Gold prices are sharply higher in midday U.S. trading Monday as prices today scored a five-week high. Safe-haven demand is featured to start the trading week amid a worrisome rise in Covid-19 infections around the globe. The gold and silver bulls are showing impressive strength despite world stock markets that are in solid rebounds from their springtime lows. August gold futures were last up $17.50 an ounce at $1,770.40. July Comex silver prices were last up $0.108 at $17.955 an ounce.
Stock market traders and investors continue to weigh the positive aspect of economies continuing to come back to life and at a faster pace than most expected versus the negative aspect of a worrisome rise in Covid-19 cases worldwide, including in many states in the U.S. Importantly, the sense of the marketplace is that major central banks of the world will continue to print money if global economies show further signs of sputtering. This influx of cash into the global financial system is also supporting stock market gains despite the still seriously hobbled major economies. Many are wondering how long it will take for the negative consequences of all that easy money to show up in economies. Very likely, this notion is also prompting some new buying in the gold market.
The important outside markets today see Nymex crude oil prices higher and trading around $40.50 a barrel. The U.S. dollar index is lower at midday today. These two markets are in a bullish daily posture for the precious metals markets. Meantime, the yield on the benchmark U.S. Treasury 10-year note is currently around the 0.69% level.
Technically, August gold futures are closing in on the April multi-year high. The bulls have the solid overall near-term technical advantage and have momentum now, to challenge the recent high and even move to a new for-the-present-move high. Gold bulls' next upside near-term price objective is to produce a close above solid technical resistance at the April high of $1,789.00. Bears' next near-term downside price objective is pushing prices below solid technical support at $1,725.00. First resistance is seen at today’s high of $1,779.00 and then at $1,789.00. First support is seen at today’s low of $1,753.50 and then at $1,740.00. Wyckoff's Market Rating: 8.0
July silver futures were nearer the session low at midday. The silver bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the April high of $19.075 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at today’s high of $18.19 and then at $18.405. Next support is seen at $17.50 and then at $17.25. Wyckoff's Market Rating: 7.0.
July N.Y. copper closed up 375 points at 264.85 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 250.00 cents. First resistance is seen at today’s high of 266.18 cents and then at 268.00 cents. First support is seen at today’s low of 259.50 cents and then at 256.00 cents. Wyckoff's Market Rating: 6.5.