Gold, silver gain despite rallies in global stock markets

(Kitco News) - Gold and silver prices are modestly higher in midday U.S. trading Monday. That’s still impressive given the solid gaines in world stock markets to start the trading week. August gold futures were last up $2.90 an ounce at $1,792.50. September Comex silver prices were last up $0.223 at $18.545 an ounce.

Rising global stock markets Monday were led by sharp gains in Chinese shares. The U.S. stock indexes are solidly higher at midday, with the Nasdaq index hitting another record high. Once again, the surprisingly rapid recoveries in global economies from their Covid-19 beatdowns is trumping the rise in pandemic infections in many industrialized countries. Last Friday’s solid U.S. jobs report was bolstered Monday by a 10.4% rise in factory orders in Germany in May. Also reported Monday was the Euro zone’s retail sales for May, which rose 17.8% from April.

With summertime in full swing in the Northern Hemisphere, many traders and investors are less concerned about markets are more concerned about outdoor activities and family vacations. However, after the unofficial end of summer—the U.S. Labor Day holiday—look for focus of the markets to be on the U.S. presidential election, in which the Democratic candidate who wants to raise personal and corporate taxes is presently enjoying a comfortable lead in the polls, and how the public school systems will reopen. Those matters could be a sobering wake-up call for stock market bulls who are riding high at present.

The important outside markets today see Nymex crude oil prices slightly lower and trading around $40.50 a barrel. The U.S. dollar index is solidly lower early today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.7% level.

Technically, August gold futures prices were nearer the session high at midday and not far from last week’s 8.5-year high. The bulls have the solid overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price objective is to produce a close above strong technical resistance at the June high of $1,807.70. Bears' next near-term downside price objective is pushing prices below solid technical support at $1,754.00. First resistance is seen at $1,800.00 and then at $1,807.70. First support is seen at today’s low of $1,779.90 and then at last week’s low of $1,766.30. Wyckoff's Market Rating: 8.5

September silver futures were were nearer the session high at midday. The silver bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the April high of $19.125 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the June low of $17.175. First resistance is seen at last week’s high of $18.85 and then at $19.00. Next support is seen at today’s low of $18.22 and then at $18.00. Wyckoff's Market Rating: 8.0.

September N.Y. copper closed up 235 points at 277.20 cents today. Prices closed nearer the session high today and hit another five-month high. Prices also scored a bullish “outside day” up on the daily bar chart. The copper bulls have the solid overall near-term technical advantage. Prices are in a 3.5-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at today’s high of 278.05 cents and then at 280.00 cents. First support is seen at 275.00 cents and then at 272.50 cents. Wyckoff's Market Rating: 7.5.

By Jim Wyckoff

For Kitco News

 jwyckoff@kitco.com

www.kitco.com