(Kitco News) - Gold prices are trading a bit higher in quieter trading at midday Thursday and not far below this week’s all-time record high. The market is pausing amid still-bullish technicals and still-friendly market fundamentals. August gold was last up $4.70 at $2,464.60. September silver was down $0.137 at $30.24.
There are growing ideas the Federal Reserve will cut U.S. interest rates this fall, with the marketplace now seeing a 100% chance of a Fed rate cut at its September meeting.
There is even some safe-haven demand fueling gold’s present rally. There are reports Chinese consumers are snapping up more gold recently, on safe-haven buying amid worries about China’s economic health, including the health of the Chinese yuan, and also due to the negative-China rhetoric coming from the two U.S. presidential candidates.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are up a bit and trading around $83.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.179%.
Technically, August gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,400.00. First resistance is seen at the overnight high of $2,478.50 and then at the record high of $2,488.40. First support is seen at today’s low of $2,459.30 and then at $2,450.00. Wyckoff's Market Rating: 9.0.
September silver futures bulls have the overall near-term technical advantage but have faded a bit. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $32.015. The next downside price objective for the bears is closing prices below solid support at the June low of $28.90. First resistance is seen at $31.00 and then at this week’s high of $31.655. Next support is seen at today’s low of $30.24 and then at $30.00. Wyckoff's Market Rating: 6.5
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