(Kitco News) - Gold and silver futures prices are solidly up in midday U.S. trading Monday, with gold hitting another record high of $2,758.70, basis December Comex futures, while silver futures hit another 12-year high. Safe-haven bidding and bullish technical charts continue invite traders and investors to the long sides of those markets. December gold was last up $16.10 at $2,755.00 and December silver was up $0.862 at $34.935.
One focal point for traders and investors this week is the BRICS meeting (Brazil, Russia, India, China, South Africa). The Associated Press today said the meeting of the BRICS bloc of developing economies “aims to counterbalance the Western-led world order. And its bloc of members is expanding rapidly. Iran, Egypt, Ethiopia, the United Arab Emirates and Saudi Arabia joined in January; Turkey, Azerbaijan and Malaysia formally applied, and a number of others expressed a desire to be members.” A main goal of the group is to move away from U.S.-dollar-dominating global commerce, so called “de-dollarization.” This concept is bullish for the safe-haven gold and silver markets.
The key outside markets today see the U.S. dollar index slightly up. The benchmark 10-year U.S. Treasury note yield is presently fetching around 4.22% and has been on the rise lately. Crude oil prices are solidly higher and trading around $72.50 a barrel.
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 $2,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,650.00. First resistance is seen at the contract high of $2,758.70 and then at $2,775.00. First support is seen at this week’s low of $2,728.50 and then at $2,708.70. Wyckoff's Market Rating: 9.5.
December silver futures bulls have the strong overall near-term technical advantage. Prices are in an accelerating 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $37.50. The next downside price objective for the bears is closing prices below solid support at $32.00. First resistance is seen at $35.00 and then at $35.50. Next support is seen at $34.50 and then at $34.00. Wyckoff's Market Rating: 9.5.
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