(Kitco News) - Gold prices are solidly up and hit another record high in early U.S. trading Tuesday. December Comex gold futures notched a record high of $2,564.60. Silver prices are also on the march higher and hit a four-week high overnight. Bullish charts and safe-haven demand, especially from China, are pushing the precious metals markets higher. December gold was last up $22.10 at $2,563.40. September silver was up $0.571 at $29.875.
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.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are at four-week highs and pointed to steady to slightly higher openings when the New York day session begins. The marketplace has been more upbeat the past week, but traders and investors know the months of September and October can be extra turbulent for stock and financial markets.
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 slightly lower. Nymex crude oil prices are near steady and are trading around $74.50 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.865%.
U.S. economic data due out Tuesday is light and includes the weekly Johnson Redbook retail sales report. The next significant U.S. data point is Wednesday afternoon’s FOMC minutes.
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 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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