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(Kitco News) – Gold and silver prices are higher in the mid-day US trade on Tuesday, after selling overnight and in the first US trade in profit taking by futures traders at short term. The bargain-hunting bulls once again stepped in to buy the falling prices, amid strong price bullish trends set in the charts. Overnight gold prices hit a record $ 1,974.70, based on Comex futures futures. Silver prices peaked over seven years ago at $ 26,275 overnight. August gold futures rose $ 14.00 an ounce to $ 1,945.00. Comex silver prices in September rose $ 0.074 to $ 24,575 an ounce.
The fundamental bullish drivers of the precious metal protests remain in place and include a continued increase in Covid-19 infections in major industrialized countries and new closings, a US government stimulus package pending for a $ 1 trillion total, a depreciation rate of the US dollar that reached nearly a This week, the lowest in two years, the rise in political tensions between the United States and China, and an increase in the purchase of exchange-traded funds.
Global stock markets mixed in overnight trading, with European indices mostly weaker and Asian indices mostly firmer. US stock indices are weaker at noon. A market analyst summed up the recent strength of the stock market against rising Covid-19 infections and a “second wave” by saying that markets appear to be trading in a return to normal by the end of the year, largely with hoping for a proven result. vaccine by then. Those market participants who “take the other side of that trade” wonder when markets will start pricing in an increasingly pandemic situation and there will be no successful vaccine on the horizon. Some argue that the gold and silver markets now have prices on this last notion.
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 $ 41.20 a barrel. The US dollar index is slightly firmer on a tepid rebound after reaching a nearly two-year low on Monday. The yield on the benchmark 10-year US Treasury note is currently trading at around 0.6%.
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 the current high of $ 1,974.70 and then at $ 2,000.00. First support is seen at $ 1,900.00 and then at $ 1,875.00. Wyckoff Market Rating: 9.5
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 the current high of $ 26,275 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 $ 25.00 and then at $ 26.00. The next support is seen at $ 24.00 and then at $ 23.50. Wyckoff Market Rating: 9.0.
New York September copper closed 215 points at 291.90 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 the current high of 294.00 cents and then at 297.00 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.
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