Gold, silver gain on chart-based buying

Gold and silver prices are higher in midday U.S. trading Monday. Amid a lack of fresh fundamental news to drive market prices, the precious metals traders are focusing on the improved near-term chart postures in gold and silver and doing some technically based buying. December gold was last up $10.00 at $2,009.80 and September silver was up $0.46 at $24.96.

Gold and silver bulls this week may also be focusing on recent upbeat U.S. and European Union economic data that may suggest better consumer and commercial demand for metals in the coming months. However, downbeat economic data coming out of China recently will keep precious metals traders from getting too bulled up.

Asian and European stock markets were mixed to higher in overnight trading. U.S. stock indexes are slightly higher at midday in quieter summertime trading. Trading may remain more subdued this week, ahead of the U.S. data point of the week on Friday: the U.S. employment situation report for July. The key non-farm payrolls number is expected to come in at up 200,000 jobs, compared to a rise of 209,000 in the June repot.

  Silver prices struggling as market ignores robust economic data

The key outside markets today see the U.S. dollar index slightly up. Meantime, Nymex crude oil prices are up and trading around $81.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.98%.

Technically, December gold futures bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,050.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,939.20. First resistance is seen at last week’s high of $2,022.10 and then at the July high of $2,028.60. First support is seen at $2,000.00 and then at today’s low of $1,986.70. Wyckoff's Market Rating: 5.5

September silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at last week’s high of $25.325 and then at the July high of $25.475. Next support is seen at $24.50 and then at last week’s low of $24.18. Wyckoff's Market Rating: 6.0.

September N.Y. copper closed up 790 points at 400.55 cents today. Prices closed near the session high today and hit a 13-week high. The copper bulls have the overall near-term technical advantage and gained more power today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the April high of 418.25 cents. The next downside price objective for the bears is closing prices below solid technical support at 378.00 cents. First resistance is seen at today’s high of 401.55 cents and then at 405.00 cents. First support is seen at 385.00 cents and then at 390.00 cents. Wyckoff's Market Rating: 6.5.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and silver

Tim Moseley