(Kitco News) Gold and silver prices are again sharply higher in midday U.S. trading Wednesday. Gold prices have pushed to a nearly nine-year high, while silver is strongly up again today and hit a 6.5-year high. The feature in the global marketplace at mid-week is the gold and silver markets. Gold is now not far below the record high of $1,920.70 scored in 2011, basis Comex futures. Safe-haven demand, technical buying, a weaker U.S. dollar index, rising crude oil prices, and increasing consumer demand from China and possibly India are all fueling the bull runs in the two precious metals markets. August gold futures were last up $20.90 an ounce at $1,864.40. September Comex silver prices were last up $1.1403 at $22.96 an ounce.
Veteran market participants know that looking at past price history helps in determining where prices are headed in the future. An examination of the monthly continuation charts for nearby gold and silver futures markets shows the next major upside target for gold is the all-time high of $1,920.70, scored in 2011. If that level is taken out, then the $2,000.00 mark would likely be challenged in short order.
For silver, the next upside price objective is longer-term chart resistance at $26.00. Importantly, while gold is near the top of its historical trading range, silver is only in the middle of its historical trading range, basis Comex futures, dating back almost 50 years ago. Such suggests there is much more room to run on the upside for the silver market, as many traders reckon silver is presently undervalued compared to big brother gold.
Look for bigger daily price moves for at least the near term. Remember, too, that even the strongest of bull market runs see significant downside price corrections in the uptrends. Keep reading my AM and PM reports for the early clues on gold and silver price trend accelerations or reversals.
Global stock markets were mostly lower in overnight trading. The U.S. stock indexes are mixed at midday. Traders and investors are more risk averse at mid-week.
China-U.S. relations continue to erode after the U.S. abruptly closed the Chinese consulate in Houston, Texas. China called the U.S. move an “unprecedented escalation” in U.S-China tensions.
President Trump has started doing Covid-19 briefings again and on Tuesday said the pandemic in the U.S. will “get worse before it gets better.” Trump also did an about-face by urging Americans to wear masks.
Hopes of another U.S. government financial aid package to Americans coming quickly have faded this week, amid disagreement among legislators on the package’s contents.
The important outside markets today see Nymex crude oil prices weaker and trading around $41.30 a barrel after hitting a 4.5-month high on Tuesday. The U.S. dollar index is lower in early trading and near this week’s 4.5-month low. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.59% level.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the monthly house price index, existing home sales, and the weekly DOE liquid energy stocks story.
Technically, August gold futures bulls have the strong overall near-term technical advantage, to suggest still more upside in the near term. Prices are in an accelerating six-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price objective is to produce a close above technical resistance at the all-time high of $1,920.70. Bears' next near-term downside price objective is pushing prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,871.20 and then at $1,900.00. First support is seen at today’s low of $1,842.10 and then at $1,829.80. Wyckoff's Market Rating: 9.5
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188)
September silver futures bulls have the strong overall near-term technical advantage to suggest still more upside. Prices are in an accelerating four-month-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at today’s high of $23.35 and then at $24.00. Next support is seen at $22.00 and then at $21.50. Wyckoff's Market Rating: 9.5.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/commentaries/2020-02-07/images/goldkitcofeb7th.png)
September N.Y. copper closed down 345 points at 292.40 cents today. Prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart. The copper bulls still have the solid overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at today’s high of 298.20 cents and then at the July high of 299.30 cents. First support is seen at this week’s low of 288.15 cents and then at 284.50 cents. Wyckoff's Market Rating: 7.5.
