Gold prices rise to 8.5 years, likely to rise much more

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(Kitco News) Gold prices are considerably higher and peaked at 8.5 years on Tuesday, in technical purchases based on very bullish charts that turned even more bullish today, suggesting further upside price potential ( probably much more to come), including a new record high. Purchase stop orders were triggered in the futures market when gold prices penetrated the previous high of movement in April. August gold futures rose $ 19.90 an ounce to $ 1,800.90. Comex silver prices in September peaked at four weeks today and rose $ 0.571 to $ 18.635 an ounce.

The underlying bullish fundamentals in the gold and silver markets include demand for safe haven due to the Covid-19 pandemic that appears to be worsening rather than improving and also further damaging world economies. Furthermore, it seems that traders and investors are realizing that the massive infusion of easy money from central banks into world financial markets in recent months will create serious problems in the future, namely problematic inflation. Metals are a historical hedge of inflation.

The world stock markets were mixed in the night trade, on this last day of the month and in the second quarter. US stock indices mix to firmer at noon. Risk appetite has receded somewhat recently amid Covid-19’s resurgence in many countries, including the United States, where several critical states are starting to close deals again.

The chairman of the United States Federal Reserve, Jerome Powell, testifies before a committee of Congress today. In prepared remarks, he said the U.S. economy has recovered faster than expected from Covid-19 damage to businesses, but he also said there are still challenges, especially in keeping the pandemic contained. United States Secretary of the Treasury Steven Mnuchin will also testify today before the House committee.

In overnight news, the Chinese government implemented its so-called national security law to strengthen its control over Hong Kong. Meanwhile, a geopolitical gap is brewing between the United States and Russia after reports emerged that Russia offered Taliban rewards for killing US soldiers.

It is a week of trading in the United States shortened by holidays, as markets are closed on Friday for the Independence Day holiday. The economic highlight of the week in the United States will be the Labor Department’s monthly jobs report for Thursday morning. In June, the key number of nonfarm payrolls is expected to increase 3.15 million, with a forecast unemployment rate of 12.4%.

Today’s major external markets see Nymex crude oil prices slightly weaker and trading around $ 39.50 a barrel. The US dollar index is weaker today at noon. The yield on the benchmark 10-year US Treasury note is currently around the 0.68% level.

Technically, August gold futures prices were close to the session high, scoring a bullish day out on the daily bar chart, peaked at 8.5 years and prepared to close at a monthly and quarterly bullish close at this last day of both. The bulls have the great short-term overall technical advantage and gained more power today. Gold Bulls’ next near-term upside price objective is to produce a close above strong technical resistance at the all-time high of $ 1,920. Bears’ next near-term downside price target is pushing prices below solid technical support at last week’s low of $ 1,753.50. The first resistance is seen at today’s high of $ 1,804.00 and then at $ 1,825.00. First support is seen at $ 1,789.00 and then at today’s low of $ 1,774.80. Wyckoff Market Rating: 9.0

September silver futures prices were close to the session high and within a four-week high. Silver bulls have the strong short-term overall technical edge and gained new power today by producing a bullish breakout from the recent lateral trading range. The next upside price objective for silver bulls is to close prices above solid technical resistance at the April high of $ 19,125 an ounce. The next downside price breakout target for bears is to close prices below solid support at the June low of $ 17,175. The first resistance is seen at $ 18.75 and then at $ 19.00. The next support is seen at $ 18.50 and then at $ 18.25. Wyckoff Market Rating: 8.0.

New York September copper closed 310 points at 271.05 cents today. Prices closed close to today’s session high and peaked at five months. Prices also closed at a monthly and quarterly bullish close on this last trading day for both. Copper bulls have the strong short-term overall technical advantage. Prices are trending up 3.5 months on the daily bar chart. The next upside objective for copper bulls prices is to push and close prices above solid technical resistance at 285.00 cents. The next downside price objective for the bears is to close prices below solid technical support at 260.00 cents. The first resistance is seen at the current high of 272.10 cents and then at 275.00 cents. First support is seen at this week’s low of 266.80 cents and then at 265.00 cents. Wyckoff Market Rating: 7.5.