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Gold up, bulls have power to challenge record high price

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(Kitco News) Gold prices are higher in early U.S. trading Thursday and pushed to another nearly nine-year high overnight. Silver hit another 6.5-year high overnight, but then backed off 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 $12.00 an ounce at $1,877.10. September Comex silver prices were last down $0.224 at $22.93 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. 

Global stock markets were mostly up in overnight trading. The U.S. stock indexes are pointed toward higher openings when the New York day session begins, including the Nasdaq at another record high. Upbeat U.S. corporate earnings are driving share prices higher, as traders and investors are at present looking past the worrisome rise in Covid-19 infection in the U.S.

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.

The important outside markets today see Nymex crude oil prices firmer and trading around $42.25 a barrel and near this week’s 4.5-month high. The U.S. dollar index is lower in early 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. 

U.S. economic data due for release Thursday includes the weekly jobless claims report, leading economic indicators, and the Kansas City Fed manufacturing survey.

Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at the overnight high of $1,887.90 and then at $1,900.00. First support is seen at the overnight low of $1,863.10 and then at $1,850.00. Wyckoff's Market Rating: 9.5

Live 24 hours gold chart [Kitco Inc.]

September silver futures bulls have the strong overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $20.00. First resistance is seen at the overnight high of $23.67 and then at $24.00. Next support is seen at the overnight low of $22.645 and then at $22.50. Wyckoff's Market Rating: 8.5. 

Live 24 hours silver chart [ Kitco Inc. ]

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