(Kitco News) - Gold prices are mildly higher and silver prices near steady at midday Monday. Gold is not far below its recent record high and silver hit a six-week high early on today. Some safe-haven demand for the precious metals is featured to start the trading week. There is keener risk aversion in the marketplace after the weekend military exchanges between Israel and Hezbollah. Israel conducted preemptive air strikes against Hezbollah installations that Israel said were poised to attack Israel, with Hezbollah then retaliating and launching missiles into Israel. December gold was last up $3.20 at $2,549.50 and September silver was down $0.015 at $29.805.
The charts remain in overall bullish postures for gold and silver, which also continues to invite the technically based speculators to the long sides of the metals.
Last week’s Federal Reserve Jackson Hole symposium also saw Fed Chairman Jerome Powell lean easy on U.S. monetary policy and deliver no hawkish surprises. That has also assuaged precious metals market bulls.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are solidly up and are trading around $77.00 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching around 3.8%.
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 $2,475.00. First resistance is seen at today’s high of $2,563.20 and then at the contract high of $2,570.40. First support is seen at the overnight low of $2,544.00 and then at $2,525.00. Wyckoff's Market Rating: 9.0.
September silver futures bulls have the overall near-term technical advantage as prices are in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at today’s high of $30.225 and then at $30.50. Next support is seen at the overnight low of $29.68 and then at $29.335. Wyckoff's Market Rating: 6.5.
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