Gold prices hit 5-week high as Covid-19 cases rise
(Kitco News) - Gold and silver prices are higher in early U.S. trading Monday, but down from their overnight highs that saw gold notch 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 the are in solid rebounds from their springtime lows. August gold futures were last up $5.50 an ounce at $1,758.50. July Comex silver prices were last up $0.143 at $17.99 an ounce.
Global stock markets were mixed to weaker in overnight trading. U.S. stock markets are pointed toward higher openings when the New York day session begins. 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.
The important outside markets today see Nymex crude oil prices near steady and trading around $39.75 a barrel. The U.S. dollar index is weaker early today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.7% level.
U.S. economic data due for release Monday includes the Chicago Fed national activity index and existing home sales.
Technically, the gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at the April high of $1,789.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,718.00. First resistance is seen at the overnight high of $1,776.70 and then at $1,789.00. First support is seen at $1,750.00 and then at $1,740.00. Wyckoff's Market Rating: 8.0
July silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February 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 the overnight high of $18.19 and then at $18.405. Next support is seen at $17.75 and then at $17.50. Wyckoff's Market Rating: 7.0.