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