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Gold, silver bulls step on the gas, prices hit multi-year highs

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(Kitco News) Gold and silver prices are sharply higher in midday U.S. trading Tuesday. Gold prices pushed to a new nearly nine-year high, while silver is strongly up again today and hit a six-year high. There continues to be a steady (and now and increasing) flow of safe-haven and technically related buying in the two precious metals, which is likely to push prices still higher in the near term. August gold futures were last up $23.60 an ounce at $1,841.10. September Comex silver prices were last up $1.228 at $21.42 an ounce. 

Silver prices may have much more room to run on the upside, as the metal is not even in the upper half of its historical trading range, basis Comex futures.

Gold and silver may also be seeing some better consumer demand coming from China, as its economy is recovery rapidly from the Covid-19 lockdown seen over the winter in that country, which is a leading consumer of gold.

Global stock markets were mostly firmer in overnight trading. The U.S. stock indexes are mixed at midday. U.S. equities are leading the global bourses higher amid better-than-expected U.S. corporate earnings reports. The Nasdaq index closed at a record high close on Monday. Traders and investors are weighing the rising Covid-19 infections in many countries, including the U.S., but also the positive news that three companies are reporting very good progress on developing a vaccine that could come to consumers for use by the end of this year and maybe as soon as September.

European Union officials finally agreed upon a contentious $2 trillion economic rescue spending plan that centers on the bloc issuing common bonds for the first time ever. Ironically, the common bond issuance could make the EU more cohesive in coming years, after recent turbulent years that saw the U.K. leave the union.

The important outside markets today see Nymex crude oil prices higher, at a 4.5-month high and trading around $42.00 a barrel. The U.S. dollar index is solidly lower in midday trading. These two key “outside markets” are in a bullish posture for the precious metals markets on this day.

The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.61% level. 

Technically, August gold futures prices were near the session high at midday. The bulls have the strong overall near-term technical advantage, to suggest still more upside in the near term. Prices are in a six-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price objective is to produce a close above technical resistance at $1,900.00. Bears' next near-term downside price objective is pushing prices below solid technical support at $1,789.00. First resistance is seen at $1,850.00 and then at $1,875.00. First support is seen at today’s low of $1,817.20 and then at this week’s low of $1,806.60. Wyckoff's Market Rating: 9.0

Live 24 hours gold chart [Kitco Inc.]

September silver futures prices were near the session high at midday. The silver bulls have the strong overall near-term technical advantage to suggest still more upside—possibly much more. Prices are in a four-month-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $22.50 an ounce. The next downside price objective for the bears is closing prices below solid support at this week’s low of $19.655. First resistance is seen at today’s high of $21.63 and then at $22.00. Next support is seen at $21.00 and then at $20.50. Wyckoff's Market Rating: 9.5.

Live 24 hours silver chart [ Kitco Inc. ]

September N.Y. copper closed up 340 points at 294.95 cents today. Prices closed nearer the session high. The copper bulls have the solid overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at 297.60 cents and then at the July high of 299.30 cents. First support is seen at today’s low of 291.95 cents and then at 290.00 cents. Wyckoff's Market Rating: 8.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.