(Kitco News) - Gold prices are up a bit at midday Tuesday but down from the record high set in early U.S. trading. December Comex gold futures notched a record high of $2,570.40. Silver prices are also slightly up after hitting a four-week high earlier today. Bullish charts and safe-haven demand, especially from China, are pushing the precious metals markets higher. December gold was last up $5.40 at $2,546.70. September silver was up $0.151 at $29.455.
Broker SP Angel said this morning in an email dispatch: “Chinese exporters and traders have been seen rushing to buy yuan and probably gold in anticipation of further U.S. dollar weakness. The metal has also been buoyed by Chinese buying after China’s central bank cracked down on local government bond buying. Troubles in the Chinese property sector have caused gold to become a preferred instrument for individual savings in China.”
China held its main interest rates steady Tuesday at the latest People’s Bank of China central bank meeting.
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 and will likely give some guidance on the timing of a U.S. interest rate cut.
The key outside markets today see the U.S. dollar index lower and hitting a seven-month low. Nymex crude oil prices are weaker and are trading around $74.00 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching around 3.85%.
The next significant U.S. data point is Wednesday afternoon’s minutes from last week’s FOMC meeting of the Federal Reserve.
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 contract/record high of $2,570.40 and then at $2,600.00. First support is seen at today’s low of $2,535.10 and then at this week’s low of $2,523.70. Wyckoff's Market Rating: 9.5.
September silver futures bulls have the overall near-term technical advantage and have 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 $28.00. First resistance is seen at $30.00 and then at $30.50. Next support is seen at the overnight low of $29.255 and then at $29.00. Wyckoff's Market Rating: 6.0.
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