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All-time highs in gold price in sight as bulls keep the pedal to the metal

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(Kitco News) - Gold prices are solidly higher and near their session highs in midday U.S. trading Thursday and pushed to another nearly nine-year high. Silver hit another 6.5-year high overnight, but then backed off a bit on some normal profit taking from the shorter-term futures traders. Gold is not far below the record high of $1,920.70 scored in 2011, basis Comex futures. Given recent bullish price action, the record high is within reach now. August gold futures were last up $27.00 an ounce at $1,891.90. September Comex silver prices were last down $0.114 at $23.035 an ounce.

Safe-haven demand, technical buying, a weaker U.S. dollar index, rising crude oil prices, and increasing consumer demand from China and possibly India are all fueling the bull runs in the two precious metals markets. Lower U.S. stock indexes today are also inviting buyers to the precious metals.

There are also slightly increased hopes of another U.S. government financial aid package to Americans sooner. The Republican members of the Senate have agreed with the Trump administration on a measure worth around $1 trillion to send to the Democrats for their consideration. The Democrats want more funds, however. The European Union earlier this week agreed on a big spending package to help out its citizens and businesses. Metals bulls are reading these developments as inflationary down the road.

The important outside markets today see Nymex crude oil prices near steady and trading around $42.00 a barrel and near this week’s 4.5-month high. The U.S. dollar index is lower in midday trading and hit another 4.5-month low. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.59% level.

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures bulls have the strong overall near-term technical advantage, to suggest still more upside in the near term. Prices are in an accelerating 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 the all-time high of $1,920.70. Bears' next near-term downside price objective is pushing prices below solid technical support at this week’s low of $1,806.60. First resistance is seen at today’s high of $1,897.70 and then at $1,900.00. First support is seen at today’s low of $1,863.10 and then at Wednesday’s low of $1,842.10. Wyckoff's Market Rating: 9.5.

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bulls have the strong overall near-term technical advantage to suggest still more upside. Prices are in an accelerating four-month-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at today’s high of $23.67 and then at $24.00. Next support is seen at today’s low of $22.555 and then at $22.00. Wyckoff's Market Rating: 9.0.

September N.Y. copper closed up 170 points at 294.15 cents today. Prices closed nearer the session high today. 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 this week’s high of 298.20 cents and then at the July high of 299.30 cents. First support is seen at this week’s low of 288.15 cents and then at 284.50 cents. Wyckoff's Market Rating: 7.5.

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.