Gold price hits another record high, closing in on $2,000
(Kitco News) - Gold prices are steady to slightly higher in early U.S. trading Monday but did hit another record high of $1,997.00, basis October Comex futures. Silver prices are also firmer. Same story: Good safe-haven demand and bullish charts are keeping buying interest keen for the two precious metals. October gold futures were last up $2.20 an ounce at $1,976.10. September Comex silver prices were last up $0.194 at $24.415 an ounce.
Global stock markets were mixed to higher in overnight trading. The U.S. stock indexes are pointed toward mixed to mostly firmer openings when the New York day session begins. The big news in the business world is weekend reports that U.S. President Trump has given the Chinese company TikTok 45 days to sell its U.S operations, as Trump says TikTok is a national security threat to the U.S. Microsoft said Sunday it plans to by TikToc. This move by the U.S. ratcheted up another notch the U.S.-China strains. That’s bullish for the safe-haven gold and silver markets.
China’s Caixin manufacturing purchasing managers index (PMI) was reported Monday and came in at 52.8 in July versus 51.2 in June and a 51.1 reading forecast by analysts. A reading above 50.0 suggests expansion in the sector. The July number was the best since 2011 and suggests the world’s second-largest economy continues to rebound while at the same time the U.S. economy may be suffering a setback from its recovery from the Covid-19 pandemic lockdowns.
China’s central bank on Monday said it will boost its money supply and total social financing in 2020 compared to 2019, including long-term loans to small businesses and manufacturers.
Meantime, the Euro zone manufacturing PMI for July was revised up to 51.8 from 47.4 in June and a 51.1. forecast for July.
The key U.S. data point of the week will be Friday’s jobs report for July from the Labor Department. The non-farm payrolls number is forecast to be up by around 1.25 million after rising by 4.8 million in June. However, don’t be surprised to see a miss from the forecasts, to likely move the markets.
The important outside markets today see Nymex crude oil prices weaker and trading around $39.75 a barrel. The crude oil market bulls have seen their price uptrend on the daily chart stall out and turn into sideways and choppy trading. The U.S. dollar index is higher on a corrective bounce after hitting a nearly two-year low last week. These tow markets on Monday are in a daily bearish posture for the precious metals markets.
U.S. economic data due for release Monday includes the U.S. manufacturing PMI, the ISM report on business and manufacturing, construction spending, domestic auto sales, and the global manufacturing PMI.
Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight record high of $1,997.00 and then at $2,000.00. First support is seen at Friday’s low of $1,960.00 and then at $1,950.00. Wyckoff's Market Rating: 10.0
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 this week’s high of $26.275 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $25.00 and then at the overnight high of $25.275. Next support is seen at $24.00 and then at Friday’s low of $23.41. Wyckoff's Market Rating: 9.0.