(Kitco News) - Gold and silver prices are higher in early U.S. trading Monday, with gold near its recent record high and silver hitting a six-week high. 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 $16.00 at $2,562.30 and September silver was up $0.345 at $30.165.
The charts remain in 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.
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to mixed openings when the New York day session begins.
In overnight news, Chinese monetary authorities left interest rates unchanged despite indications the world’s second-largest economy is listing.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are up and are trading around $77.00 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.805%.
U.S. economic data due out Monday includes durable goods orders and the Texas manufacturing outlook survey.
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 the contract high of $2,570.40 and then at $2,600.00. 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 $30.50 and then at $31.00. 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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