Gold, silver bulls keep tight grip on their markets

(Kitco News) - Gold prices are solidly higher in midday U.S. trading Monday, while silver prices are sharply up. Both metals hit new for-the-move highs last Friday. Gold notched a record high of $2,078.00, basis October Comex futures, while silver hit a more-than-seven-year high of $29.915, basis September Comex futures. Some mild profit taking from the futures traders did pull prices off their highs, but bulls quickly stepped in to buy the dips. October gold futures were last up $17.00 an ounce at $2,035.30. September Comex silver prices were last up $1.565 at $29.095 an ounce.

Importantly, the charts still suggest the path of least resistance for gold and silver markets is still higher.

Global stock markets were mostly up in overnight trading. The U.S. stock indexes are mixed in midday New York trading. Global traders and investors were somewhat assuaged by the weekend news that President Trump has tried to move unilaterally to provide more economic assistance to Americans, as the Congress has seen no progress on the matter. Whether Trump succeeds remains to be seen.

While the U.S. has recorded the lowest number of new Covid cases in nearly a week, some states are still seeing a rise in infections. There are also reports the five major college conferences are likely to cancel all sports for this fall. That could deal a psychological blow to many American traders and investors.

U.S.-China tensions remain high as the highest-ranking U.S. official in decades visited Taiwan over the weekend. Mainland China military jets reportedly flew over Taiwan’s air space. Mainland China claims Taiwan as its own province. Meantime, reports said two U.S. senators will be sanctioned by China in retaliation. This comes as top U.S. and China trade officials are set to meet on August 15.

The important outside markets today see Nymex crude oil prices firmer and trading around $42.00 a barrel. The U.S. dollar index is slightly up on a corrective bounce after hitting a two-year low last week. The yield on the benchmark 10-year U.S. Treasury note is presently around 0.57%.

Technically, October gold futures bulls have the strong overall near-term technical advantage, to suggest still more upside in the near term. Prices are in a 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 $2,000.00. First resistance is seen at today’s high of $2,050.90 and then at $2,078.00. First support is seen at today’s low of $2,018.90 and then at $2,000.00. Wyckoff's Market Rating: 9.5

September silver futures bulls have the strong overall near-term technical advantage. 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 $30.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at today’s high of $29.53 and then at $29.915. Next support is seen at today’s low of $27.96 and then at $27.50. Wyckoff's Market Rating: 9.5.

September N.Y. copper closed up 755 points at 286.80 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. However, a 4.5-month-old uptrend on the daily bar chart has been negated. 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 270.00 cents. First resistance is seen at today’s high of 288.50 cents and then at last week’s high of 293.95 cents. First support is seen at 280.00 cents and then at today’s low of 278.20 cents. Wyckoff's Market Rating: 7.0.

By Jim Wyckoff

For Kitco News

 jwyckoff@kitco.com

www.kitco.com