Gold and silver prices hit multi-year highs, further hikes likely

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(Kitco News) – Gold and silver prices are much higher in early U.S. operations on Tuesday. Gold prices peaked at almost nine years, while silver has risen again today and peaked at four years. There is still a steady (and now increasing) flow of safe and technically related buying in the two precious metals, which is likely to push prices even higher in the near term. August gold futures rose $ 22.40 an ounce to $ 1,839.40. Comex silver prices in September rose $ 1,153 to $ 21.35 an ounce.

Global stock markets were mostly firmer in overnight trading. US stock indices point to higher openings when the New York day session begins. US equities are leading the highest global levels amid better-than-expected US corporate earnings reports. The Nasdaq index closed at a record close on Monday. Traders and investors are weighing rising Covid-19 infections in many countries, including the US, but also positive news that three companies report very good progress in developing a vaccine that could reach consumers for their I use later this year and maybe as early as September.

European Union officials finally agreed to a contentious $ 2 trillion economic bailout plan that focuses on the block that issues common bonds for the first time. Ironically, the issuance of common bonds could make the EU more cohesive in the years to come, after the turbulent recent years that saw the UK leave the union.

Today’s major external markets see Nymex crude oil prices higher, at a 4.5-month high and trading around $ 42.00 a barrel. The US dollar index is slightly weaker in early trading. The yield on the benchmark 10-year US Treasury note is currently around the 0.61% level.

The US economic data to be released Tuesday is light and includes the weekly Goldman Sachs and Johnson Redbook retail sales reports and the Chicago Fed national activity index.

Technically, gold bulls have the great short-term overall technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $ 1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $ 1,789.00. The first resistance is seen at the nightly high of $ 1,830.00 and then at $ 1,840.00. First support is seen at the nightly low of $ 1,817.20 and then at Monday’s low of $ 1,806.60. Wyckoff Market Rating: 9.0.

September silver futures bulls have the strong overall short-term technical advantage. The next upside price objective for silver bulls is to close prices above solid technical resistance at $ 22.00 an ounce. The next downside price breakout target for bears is to close prices below solid support at this week’s low of $ 19,655. The first resistance is seen at $ 21.00 and then at $ 21.25. The next support is seen at $ 20.50 and then at the nightly low of $ 20,315. Wyckoff Market Rating: 9.0.