(Kitco News) - Gold and silver prices are sharply up in midday U.S. trading Monday, with gold notching a three-week high and silver a two-month high. Safe-haven demand is featured to start the trading week as trade tensions between the world’s two largest economies are rising again. A lower U.S. dollar index and solidly higher crude oil prices are also bullish outside markets for the precious metals. August gold was last up $86.30 at $3,401.90. July silver prices were last up $1.566 at $34.59.
Risk aversion is keener to start the trading week after President Trump over the weekend accused China of violating a recent trade deal. Trump also said U.S. tariffs on steel and aluminum will be increased this week. Reads a Barron’s headline today: “U.S.-China trade talks get ugly.”
In other news, JP Morgan chief Jamie Dimon warned in a speech at an economic forum that “you are going to see a crack in the bond market” unless the U.S. takes steps to address its spiraling national debt. “It’s going to happen.”
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil futures prices are solidly higher and trading around $62.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.454%.
Technically, August gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,477.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $3,269.10. First resistance is seen at the $3,425.00 and then at $3,450.00. First support is seen at $3,350.00 and then at the overnight low of $3,319.40. Wyckoff's Market Rating: 7.0.
July silver futures bulls have the solid overall near-term technical advantage and gained fresh power today. Prices have seen a bullish upside “breakout” from the recent sideways and choppy trading range. Silver bulls' next upside price objective is closing prices above solid technical resistance at the March high of $35.80. The next downside price objective for the bears is closing prices below solid support at last week’s low of $32.80. First resistance is seen at today’s high of $34.65 and then at $35.00. Next support is seen at $34.00 and then at $33.50. Wyckoff's Market Rating: 7.5.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
