(Kitco News) - Gold prices are solidly up and hit contract/record highs Monday, extending a mature bull run on growing ideas the Federal Reserve will make three quarter-point interest rate cuts before year’s end. Silver prices today scored a fresh 14-year high. There are no strong, early technical or fundamental clues that market tops are close at hand for the two precious metals. December gold was last up $29.40 at $3,682.60. December silver prices were up $0.678 at $42.23.
Last Friday’s jobs report showed the U.S. job market cooled further in August, with nonfarm payrolls rising by just 22,000, well below forecasts of 75,000 and a sharp drop from July’s revised 79,000. The U.S. unemployment rate edged up to 4.3%, the highest since 2021, signaling a slowdown in hiring momentum. The markets read Friday’s jobs data as meaning the Federal Reserve will cut interest rates by at least 0.75% by the end of this year. Lower interest rates are a positive for most commodity markets, suggesting improved demand.
U.S. stock indexes are pointed firmer near midday. The key outside markets today see the U.S. dollar index weaker, while crude oil futures are modestly higher and trading around $62.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.05%.
Technically, December gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,500.00. First resistance is seen at today’s contract high of $3,685.70 and then at $3,700.00. First support is seen at the overnight low of $3,621.70 and then at $3,600.00. Wyckoff's Market Rating: 9.0.
December silver futures bulls have the solid overall near-term technical advantage. A bull flag pattern has formed on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $45.00. The next downside price objective for the bears is closing prices below solid support at $38.00. First resistance is seen at today’s high of $42.355 and then at $43.00. Next support is seen at $41.50 and then at $41.00. Wyckoff's Market Rating: 8.5.
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