Gold, silver markets see price gains to start trading week
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(Kitco News) - Gold and silver futures markets are firmer in early U.S. trading Monday. The gains in the metals today are impressive given that global risk appetite us keener to start the trading week. October gold futures were last up $11.30 an ounce at $1,949.60. September Comex silver prices were last up $0.228 at $26.945 an ounce.
Global stock markets were higher overnight. The U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins, including the S&P 500 and Nasdaq at record highs. Risk appetite is upbeat to start the trading week, despite two tropical storms brewing in the Gulf of Mexico and wildfires raging in California and Colorado.
President Trump on Sunday announced an emergency authorization for the use of recovered Covid-19 patient blood plasma to fight off the virus. The global stock markets may have gotten a slight lift from this news.
Meantime, markets are looking past a comment Trump made to Fox News over the weekend that the U.S. does not need to do business with China. China and the U.S. appear to be moving along with their “Phase 1” trade agreement reached in January, with China buying U.S. agricultural products at a steady pace. Reports from Asia said major flooding in China in recent weeks has destroyed large tracts of crop land that will keep China on a hefty food import pace.
Gold prices are higher Monday morning, on some perceived bargain hunting as prices have backed down from the record high scored in early August and are trading below $2,000. A weaker U.S. dollar index Monday is aiding the precious metals market bulls.
Traders and investors are looking forward to two big events this week: the U.S. Republican national convention in which President Trump will accept his party’s nomination, and the annual Federal Reserve Symposium that has been traditionally held in Jackson Hole, Wyoming but this year will be virtual. Fed Chairman Jerome Powell is scheduled to speak late this week during the event.
The important outside markets today see Nymex crude oil prices firmer and trading around $42.65 a barrel. The U.S. dollar index is lower and not far above its recent two-year low.
U.S. economic data due for release Monday is light and includes the Chicago Fed national activity index.
Technically, the gold bulls have the firm overall near-term technical advantage, amid recent normal downside price corrections in a market that is still solidly bullish. Prices are still in an uptrend on the daily bar chart. 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 $1,955.70 and then at $1,975.00. First support is seen at the overnight low of $1,929.40 and then at last week’s low of $1,909.60. Wyckoff's Market Rating: 7.0
September silver futures bulls have the solid overall near-term technical advantage. A bullish symmetrical triangle pattern has formed on the daily bar chart. Prices are still in an overall price uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August high of $29.915 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $23.58. First resistance is seen at $27.50 and then at $28.00. Next support is seen at last week’s low of $26.095 and then at $26.000. Wyckoff's Market Rating: 7.5.