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Gold, silver up as bulls gaining momentum

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(Kitco News) - Gold and silver prices are firmer in midday trading Tuesday. Gold hit a three-week high and silver a two-week high today and the bulls are gaining more confidence. The gold market paused today after good gains posted Monday. The precious metals bulls are encouraged this week by growing ideas the Federal Reserve will not be able to start tightening its monetary policy as soon as many had reckoned just a few weeks ago. The big rebound in crude oil prices this week is also a positive for the metals and the entire raw commodity sector. October gold futures were last up $1.40 at $1,805.40 and September Comex silver was last up $0.219 at $23.875 an ounce.

Global stock markets were flat to firmer overnight. The U.S. stock indexes are higher and at or near record highs and that is taking some buying interest away from the precious metals. Fundamentally, stock market traders are presently putting more emphasis on strong corporate earnings reports and recent solid U.S. economic data, and less emphasis on the surging coronavirus that may have the potential to damage major economies again in the coming months. However, it could be that the pendulum will swing the other way after the U.S. Labor Day holiday, when the stock and financial markets enter what can be the historically rough waters of September and October. Such a scenario would seem to favor the safe-haven metals markets bulls.

The attention of the marketplace this week is on the annual Federal Reserve symposium held in Jackson Hole, Wyoming, starting Thursday. Fed Chair Jerome Powell is slated to speak virtually on Friday. The confab has been pared back a bit and parts of it will be virtual this year due to the spreading delta variant of the coronavirus. Many traders and investors are now thinking the Federal Reserve will lean less hawkish on U.S. monetary policy at the Fed symposium, due to the rapidly spreading Covid variant.

The key outside markets today see the U.S. dollar index a bit firmer and still trending higher. Nymex crude oil futures prices are higher and trading around $67.50 a barrel. This week’s strong rebound in crude prices suggests that market has put in a near-term bottom. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.28%.

Live 24 hours gold chart [Kitco Inc.]

Technically, October gold futures bulls have the overall near-term technical advantage. A price uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the August high of $1,833.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at $1,815.00 and then at $1,825.00. First support is seen at $1,790.00 and then at this week’s low of $1,775.90. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures prices hit a two-week high today. More short covering was featured. The silver bears still have the overall near-term technical advantage. Prices are in a three-month-old downtrend 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 the August low of $22.295. First resistance is seen at $24.00 and then at $24.38. Next support is seen at today’s low of $23.545 and then at $23.00. Wyckoff's Market Rating: 3.0.

September N.Y. copper closed up 330 points at 427.00 cents today. Prices closed near the session high again today on more short covering after hitting a 4.5-month low last week. The copper bears still have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 443.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 396.15 cents. First resistance is seen at today’s high of 429.70 cents and then at 435.00 cents. First support is seen at today’s low of 419.05 cents and then at this week’s low of 412.90 cents. Wyckoff's Market Rating: 4.0.

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.