Gold, silver prices up even as global stock markets rally
(Kitco News) - Gold prices are modestly higher in early U.S. trading Monday, following long U.S. holiday weekend. Silver prices are posting solid gains today. The gold market bulls are faring well at present despite bullish world stock markets. August gold futures were last up $6.70 an ounce at $1,796.60. September Comex silver prices were last up $0.348 at $18.66 an ounce.
Global stock markets were mostly higher in overnight trading, led by sharp gains in Chinese shares. The U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins, with the Nasdaq index hitting another record high overnight. Once again, the surprisingly rapid recoveries in global economies from their Covid-19 beatdowns is trumping the rise in pandemic infections in many industrialized countries.
Last Friday’s solid U.S. jobs report was bolstered by a 10.4% rise in factory orders in Germany in May. Also reported Monday was the Euro zone’s retail sales for May, which rose 17.8% from April.
With summertime in full swing in the Northern Hemisphere, many traders and investors are less concerned about markets are more concerned about outdoor activities and family vacations. However, after the unofficial end of summer—the U.S. Labor Day holiday—look for focus of the markets to be on the U.S. presidential election, in which the Democratic candidate who wants to raise personal and corporate taxes is presently enjoying a comfortable lead in the polls, and how the public school systems will reopen. Those matters could be a sobering wake-up call for stock market bulls who are riding high at present.
The important outside markets today see Nymex crude oil prices slightly lower and trading around $40.50 a barrel. The U.S. dollar index is solidly lower early today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.69% level.
U.S. economic data due for release Monday includes the U.S. services purchasing managers’ index (PMI), the ISM non-manufacturing report on business, the employment trends index, and the global services PMI.
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 this week’s high of $1,807.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,754.00. First resistance is seen at $1,800.00 and then at $1,807.50. First support is seen at the overnight low of $1,779.20 and then at last week’s low of $1,766.30. Wyckoff's Market Rating: 8.0
September silver futures bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $19.125 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the June low of $17.175. First resistance is seen at the overnight high of $18.61 and then at last week’s high of $18.85. Next support is seen at the overnight low of $18.22 and then at $18.00. Wyckoff's Market Rating: 7.5.