(Kitco News) - Gold prices are sharply higher at midday Wednesday and hit a record high of $2,057.50, basis October Comex futures, earlier in the session. Meantime, silver prices are also posting solid gains and hit a seven-year high of $27.25, basis September Comex futures, earlier. The precious metals bulls continue to flex their muscles and are still not satisfied with present lofty price levels. October gold futures were last up $28.90 an ounce at $2,037.40. September Comex silver prices were last up $0.817 at $26.845 an ounce.
Gold and silver continue to see support from safe-haven demand amid the worrisome rise in Covid-19 infections, geopolitical developments and concerns about problematic price inflation in the coming months. As the U.S. Congress appears to be getting closer to a new round of government stimulus payments to Americans, such would only add to the massive influx of liquidity into the world financial system, which has created the inflation concerns.
Global stock markets were mostly up in overnight trading. The U.S. stock indexes are higher at midday in New York, including a new record high in the Nasdaq stock index. Hopes of a new U.S. government stimulus package for Americans coming soon are rising at mid-week on reports Democrats and Republicans are coming closer to agreement on a package. Rising crude oil prices that hit a five-month high overnight are also giving traders and investors a boost.
The key U.S. data point of the week will be Friday’s jobs report for July from the Labor Department. The non-farm payrolls number is forecast to be up by around 1.25 million after rising by 4.8 million in June. However, don’t be surprised to see a miss from the forecasts, to likely move the markets.
The important outside markets today see Nymex crude oil prices higher, hitting a five-month high and trading around $42.50 a barrel. The U.S. dollar index is solidly lower today. The yield on the benchmark 10-year U.S. Treasury note is presently around 0.54% and near a record low.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, October gold futures bulls have the strong overall near-term technical advantage, to suggest still more upside in the near term. However, the market is due for a normal downside correction soon. Prices are in an accelerating two-month-old uptrend on the daily bar chart. Gold bulls' next upside near-term price objective is to produce a close above technical resistance at $2,100.00. Bears' next near-term downside price objective is pushing prices below solid technical support at $1,950.00. First resistance is seen at $2,050.00 and then at today’s record high of $2,057.50. First support is seen at today’s low of $2,015.50 and then at $2,000.00. Wyckoff's Market Rating: 10.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
September silver futures bulls have the strong overall near-term technical advantage and gained more power today. Prices are in a 4.5-month-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $28.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at today’s high of $27.25 and then at $27.50. Next support is seen at $26.00 and then at today’s low of $25.64. Wyckoff's Market Rating: 9.5.
September N.Y. copper closed up 240 points at 291.85 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage. However, a 4.5-month-old uptrend on the daily bar chart is in jeopardy. 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 293.95 cents and then at 295.00 cents. First support is seen at today’s low of 288.75 cents and then at 285.00 cents. Wyckoff's Market Rating: 7.5.
