(Kitco News) - Gold and silver prices are higher in midday U.S. trading Monday, with gold sharply up and hitting a record high of $3,983.00, basis December Comex futures. Silver prices are firmly up and hit a 14-year high of $48.61. Platinum futures hit a 13-year high of $1,650.20, basis nearby futures. Steady safe-haven demand continues to be featured in the precious metals. December gold was last up $65.30 at $3,974.20. December silver prices were up $0.46 at $48.42.
The expected U.S. interest rate cuts yet this year and the prospect of a prolonged U.S. federal government shutdown have boosted trader and investor demand for precious metals. Gold prices are up around 50% this year. Gold-backed exchange-traded funds swelled again last week, with private investors contributing to the latest leg in the rally and total holdings expanding the most in more than three years last month, according to Bloomberg.
There are no signs the U.S. government shutdown is close to ending. U.S. House Republican leaders have told their members to stay away from Washington while the federal government is shut down. House Majority Whip Tom Emmer said House Republicans are ready to get back to work as soon as Chuck Schumer and Democrats in the Senate reopen the government, said Bloomberg in a report. “Prospects of a deal in the Senate anytime soon appear remote, with Senator Susan Collins saying it appears they're not getting close on reopening the government,” said Bloomberg. This uncertainty is also bullish for the safe-haven metals.
The key outside markets today see the U.S. dollar index higher, while crude oil prices are higher and trading around $61.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.16%.
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 $4,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,750.00. First resistance is seen at today’s record high of $3,983.00 and then at $4,000.00. First support is seen at $3,925.00 and then at $3,900.00. Wyckoff's Market Rating: 9.5.
December silver futures bulls have the strong overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $50.00. The next downside price objective for the bears is closing prices below solid support at $45.00. First resistance is seen at today’s high of $48.61 and then at $49.00. Next support is seen at $48.00 and then at $47.50. Wyckoff's Market Rating: 9.0.
(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, Gold prices are sharply up in early U.S. trading Monday and hit another record high. Silver prices are also up and notched another 14-year high. The powerful but mature bull market runs in gold and silver are accelerating. That’s one early clue that from a time perspective, major market tops could come sooner rather than later. However, from a price perspective, there still could be much more room on the upside for gold and silver prices during this acceleration phase of the mature bull markets, before they peter out for a while. December gold was last up $40.80 at $3,815.90. December silver prices were up $0.361 at $44.575.
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