(Kitco News) - Gold prices are modestly lower in early U.S. trading Monday, on some mild profit-taking pressure by the shorter-term traders after prices hit new record highs overnight. December Comex gold futures notched a record high of $2,549.90. Spot (cash) gold prices hit a new all-time high of $2,521.00 overnight. Bullish charts and safe-haven demand are driving the yellow metals prices higher. Silver is also up and is likely to be supported by gold’s price updraft. December gold was last down $6.00 at $2,532.00. September silver was up $0.221 at $29.065.
Broker SP Angel said today in a dispatch that gold prices started to climb Friday afternoon on reports China’s central bank has given new gold- import quotas to Chinese banks, “triggering speculation of a renewed wave of buying.” Chinese 10-year yields fell to record lows last week, with institutions rushing to buy over concerns of growth slowdown and deflation. “As a result, Chinese buyers are seeking alternative safe-haven protection, with gold an obvious candidate,” said the broker.
Also supporting gold are still lingering concerns about an Iranian military strike against Israel. However, it’s possible an Israeli-Hamas ceasefire agreement is close at hand. That could change Iran’s calculus on attacking Israel following recent Israeli assassinations of Hamas and Hezbollah officials.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed steady to slightly lower openings when the New York day session begins. The marketplace has significantly reduced its anxiousness regarding an impending U.S. economic recession after last week’s strong U.S. retail sales report for July. Reports said Goldman Sachs has cut its U.S. recession odds to just 20%.
Traders are awaiting the annual Jackson Hole Federal Reserve symposium that begins later this week. Past years have seen central bank officials make markets-moving pronouncements at the confab. Fed Chairman Powell is slated to speak at the symposium Thursday morning.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are lower and are trading around $76.00 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.869%.
U.S. economic data due out Monday includes leading economic indicators.
Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,600.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,450.00. First resistance is seen at the overnight contract/record high of $2,549.90 and then at $2,575.00. First support is seen at the overnight low of $2,524.40 and then at $2,500.00. Wyckoff's Market Rating: 8.5.
September silver futures bears have the slight overall near-term technical advantage. However, bulls have some momentum on their side now. Silver bulls' next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at $27.50. First resistance is seen at $29.355 and then at $29.59. Next support is seen at the overnight low of $28.78 and then at $28.50. Wyckoff's Market Rating: 4.5
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