Gold, silver rally amid bullish outside markets
Gold and silver prices are higher, with gold solidly up, near midday Monday. The precious metals are being supported in part by bullish daily outside market elements that include higher crude oil prices and a slight down-tick in U.S. bond yields. The gold market also sees technical buying on a bullish chart posture. Silver is also being supported by some short covering in the futures market and some perceived bargain buying after recent selling pressure. December gold was last up $23.60 at $2,497.10. September silver was up $0.287 at $27.87.
Metals traders are awaiting the U.S. data points of the week: the July producer price index on Tuesday and the consumer price index for July on Wednesday. PPI is seen up 0.2% from June and the CPI is also seen up 0.2%, month-on-month. The retail sales report on Thursday will also be closely scrutinized by the marketplace.
Asian and European stock indexes were mixed but mostly firmer overnight. U.S. stock indexes are mixed at midday. The U.S. stock indexes have made solid rebounds from their August lows, but the bulls are not out of the woods yet.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are up and are trading around $78.50 a barrel. A DowJones Newswire headline today reads: “Oil edges higher as markets brace for Iran retaliation.” The benchmark 10-year U.S. Treasury note is presently fetching around 3.96%.
Technically, December gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,537.70. Bears' nextnear-term downside price objective is pushing futures prices below solid technical support at $2,350.00. First resistance is seen at today’s high of $2,500.30 and then at $2,516.60. First support is seen at the overnight low of $2,462.70 and then at $2,450.00. Wyckoff's Market Rating: 7.5.
September silver futures bears have the overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August high of $39.355. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at today’s high of $28.08 and then at $28.50. Next support is seen at today’s low of $27.28 and then at $27.00. Wyckoff's Market Rating: 3.5
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Sign up here; it’s real easy. https://www.kitco.com/services
Kitco Media
Jim Wyckoff
Tim Moseley