Bullish cocktail fueling strong gains in gold and silver

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(Kitco News) – Gold prices are much higher at midday in US trading on Monday and hit a new record of $ 1,941.90, based on Comex futures. The previous record was $ 1,920.70 recorded in 2011. The next upside price target for bulls in the very powerful gold market is $ 2,000. Meanwhile, silver futures hit a seven-year high of $ 24.82 in overnight trading. August gold futures rose $ 33.80 an ounce to $ 1,930.90. Comex silver prices in September rose $ 1.50 to $ 24,355 an ounce.

The feature in the global market to start the trading week is the rise in gold and silver prices amid a bullish cocktail of fundamental and technical factors. A worrying continued rise in Covid-19 infections in major industrialized countries, a new US government stimulus package totaling $ 1 trillion, a US dollar drop rate that hit a low today of nearly two years, mounting trade tensions between the US and China, and a large surge in buying gold-exchange exchange-traded funds, including the Robinhood platform, all safe haven metals are driving strongly. Add very bullish chart positions for both precious metals.

World stock markets were mixed in overnight trading. US stock indices are firmer at noon. The US actions are fueled in part by news over the weekend that a trillion-dollar US government economic stimulus plan is advancing the legislative process faster than expected.

The Federal Reserve Open Market Committee (FOMC) will meet Tuesday and Wednesday to discuss monetary policy in the United States. No policy changes are expected, but the Fed is expected to reiterate that US interest rates will remain low for a long time amid the challenges of facing the pandemic.

Today’s major external markets see Nymex crude oil prices weaker and trading around $ 40.50 a barrel. The US dollar index fell sharply and hit a nearly two-year low overnight. The yield on the benchmark 10-year US Treasury bond is declining a bit and is trading around the 0.58% level.

Technically, the August gold futures bulls have a strong overall short-term technical advantage, suggesting an even greater short-term advantage. Prices are on a seven-week accelerated bullish trend on the daily bar chart. Gold Bulls’ next near-term upside price objective is to produce a close above technical resistance at $ 2,000.00. Bears’ next near-term downside price objective is pushing prices below solid technical support at $ 1,850.00. The first resistance is seen at today’s high of $ 1,941.40 and then at $ 1,950.00. First support is seen today at the low of $ 1,899.00 and then at $ 1,875.00. Wyckoff Market Rating: 10.0

The September silver futures bulls have the great short-term overall technical advantage to suggest further upside. Prices are on an accelerated uptrend of 4.5 months on the daily bar chart. The next upside price objective for silver bulls is to close prices above solid technical resistance at $ 25.00 an ounce. The next downside price objective for the bears is to close prices below solid support at $ 22.00. The first resistance is seen at today’s high of $ 24.82 and then at $ 25.00. The next support is seen at $ 24.00 and then at $ 23.50. Wyckoff Market Rating: 9.5.

New York September copper closed 50 points at 289.75 cents today. Prices closed near the mid-range today. Copper bulls have the strong short-term overall technical advantage. Prices are on a 4.5 month uptrend on the daily bar chart. The next upside price objective for copper bulls is to push and close prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is to close prices below solid technical support at 275.00 cents. The first resistance is seen at last week’s high of 298.20 cents and then at the July high of 299.30 cents. First support is seen at last week’s low of 286.65 cents and then at 284.50 cents. Wyckoff Market Rating: 7.5.