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Gold price up as bulls remain very strong

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(Kitco News) - Gold and silver prices are higher in early U.S. trading Monday. Both metals hit new for-the-move highs last Friday. Gold notched a record high of $2,078.00, basis October Comex futures, while silver hit a more-than-seven-year high of $29.915, basis September Comex futures. Some mild profit taking from the futures traders has pulled prices off their highs, but such produces normal and healthy downside corrections in existing and still-strong price uptrends. October gold futures were last up $15.40 an ounce at $2,033.40. September Comex silver prices were last up $0.92 at $28.47 an ounce.

Global stock markets were mostly up in overnight trading. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Global traders and investors were somewhat assuaged by the weekend news that President Trump has tried to move unilaterally to provide more economic assistance to Americans, as the Congress has seen no progress on the matter. Whether Trump succeeds remains to be seen.

While the U.S. has recorded the lowest number of new Covid cases in nearly a week, some states are still seeing a rise in infections. There are also reports the five major college conferences are likely to cancel all sports for this fall. That could deal a psychological blow to many American traders and investors.

U.S.-China tensions remain high as the highest-ranking U.S. official in decades visited Taiwan over the weekend. Mainland China military jets reportedly flew over Taiwan’s air space. Mainland China claims Taiwan as its own province. Meantime, reports said two U.S. senators will be sanctioned by China in retaliation. This comes as top U.S. and China trade officials are set to meet on August 15.

The important outside markets today see Nymex crude oil prices firmer and trading around $41.75 a barrel. The U.S. dollar index is modestly up on a corrective bounce after hitting a two-year low last week. The yield on the benchmark 10-year U.S. Treasury note is presently around 0.55%.

U.S. economic data due for release Monday is light and includes the employment trends index.

Live 24 hours gold chart [Kitco Inc.]

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 $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,050.00 and then at last week’s record high of $2,078.00. First support is seen at the overnight low of $2,018.90 and then at $2,000.00. Wyckoff's Market Rating: 9.0

Live 24 hours silver 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 $30.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $25.00. First resistance is seen at the overnight high of $28.845 and then at $29.00. Next support is seen at the overnight low of $27.96 and then at $27.50. Wyckoff's Market Rating: 9.0.

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.