(Kitco News) - Gold and silver prices are sharply higher and hit all-time highs in midday U.S. trading Monday. December Gold futures hit an intra-day record high of $4,124.30 an ounce as of this writing. December silver futures hit an intra-day record peak of $50.56 an ounce. Safe-haven demand, as the U.S. government remains shut down and amid a major short squeeze in silver, is driving the prices of both metals skyward. And the would-be bears are too scared to step in front of a freight train. The recent bigger daily price moves in gold and silver markets suggest volatility will remain high in the near term, but also suggest very mature bull markets. December gold was last up $118.00 at $4,118.00. December silver prices were up $3.028 at $50.275.
Silver prices have surged strongly as a historic short squeeze in London has intensified, “with a fresh surge in prices adding urgency to a worldwide hunt for bullion that could alleviate the mismatch between demand and supply,” reported Bloomberg. Concerns about a lack of liquidity in London are prompting the squeeze. Benchmark prices in London have soared to unprecedented levels over New York prices, prompting some traders to book cargo slots on transatlantic flights for silver bars — an expensive mode of transport typically reserved for gold — to profit off the massive premiums in London. Platinum and palladium have also surged, amid signs that market stresses caused by surging investor demand are starting to spread to other precious metals.
President Trump’s order of permanent layoffs has hardened Democrats’ distrust of Republicans and may prolong the government shutdown, according to a report from Bloomberg. Democrats see the funding fight as their first real moment of leverage and are focusing on health care costs, which they believe will resonate with voters ahead of next year’s midterm elections. Senate Democrats say they won’t drop their filibuster blocking a reopening of the government without upfront negotiations on their demands, including an extension of Affordable Care Act premium subsidies. Republicans have dismissed Democrats’ efforts as nothing more than political opportunism, arguing their real concern is satisfying a liberal base eager to take on Trump.
The key outside markets today see the U.S. dollar index firmer. Crude oil prices are up and trading around $59.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.06%.
Technically, December gold futures bulls have the strong overall near-term technical advantage and regained power today. Bulls’ next upside price objective is to produce a close above solid resistance at $4,200.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,900.00. First resistance is seen at the record high of $4,124.30 and then at $4,150.00. First support is seen at $4,050.00 and then at today’s low of $4,011.30. Wyckoff's Market Rating: 9.5
December silver futures bulls have the solid overall near-term technical advantage and regained power today. Silver bulls' next upside price objective is closing prices above solid technical resistance at $52.50. The next downside price objective for the bears is closing prices below solid support at last week’s low of $46.70. First resistance is seen at today’s record high of $50.56 and then at $51.00. Next support is seen at $49.00 and then at $48.00. Wyckoff's Market Rating: 9.5
(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, 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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