(Kitco News) - Gold prices are solidly higher in midday U.S. trading Thursday. The technical charts remain bullish, which is prompting chart-based speculator buying interest. Silver prices are also posting solid gains on short covering in the futures markets and some perceived bargain hunting. December gold was last up $26.90 at $2,459.10. September silver was up $0.606 at $27.555.
Gold market bulls today brushed aside reports that said China’s central bank again held off buying gold for a third straight month. Sovereign countries’ demand for gold fell to 39% of the market in the second quarter versus the first quarter, as central banks stepped back amid rising gold prices. Second-quarter sovereign gold demand rose 4%, year-on-year.
There are still concerns regarding a flare-up in Middle East military action, which could be prompting some safe-haven demand for gold and silver. Israel has been braced for a major attack from Iran and its proxies after Israel recently assassinated key military officials from Hamas and Hezbollah. This matter could be the next major geopolitical event that rattles the marketplace.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are higher and trading around $76.00 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.996%.
Technically, December gold bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,537.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,350.00. First resistance is seen at 2,475.00 and then at $2,500.00. First support is seen at today’s low of $2,420.20 and then at this week’s low of $2,403.80. Wyckoff's Market Rating: 7.0.
September silver futures bears have the overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $39.355. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at $28.00 and then at $28.50. Next support is seen at $27.00 and then at today’s low of $26.505. Wyckoff's Market Rating: 4.0.
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