Strongly bullish charts suggest even higher for gold, silver

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(Kitco News) Gold and silver prices are highest at midday in US trade on Monday, with silver prices rising sharply and reaching an 11-month high. Buying interest in both precious metals continues to be fueled by very bullish charts and troubling geopolitical elements that persist just ahead of the market. August gold futures rose $ 10.60 an ounce to $ 1,812.60. Comex silver prices in September rose $ 0.662 to $ 19,715 an ounce.

World stock markets increased mainly in overnight trading. US stock indices are solidly higher at noon. Much of the market on Monday is once again looking beyond the Covid-19 pandemic, which saw a record number of daily infections reported over the weekend in Florida, and instead seeks to improve global economies and is generally reported Better-than-Expected Economic Data As companies around the world are reopening their spring locks.

Bulls in the gold and silver market are especially impressed with the ability of their markets to recover from rising stock markets. It could also be that gold and silver traders consider that improving global economies will mean increased demand from gold and silver consumers, especially from China and India.

The growing tensions between the US and China are not yet back in the forefront of the market, but they are close. The world’s two largest economies continue to exchange spikes and impose sanctions on each other.

It’s a busy week for the market, as corporate earnings, central bank meetings, and China’s GDP data are due. There were no important US economic data for release on Monday, but the pace is accelerating rapidly on Tuesday.

Today’s major external markets see Nymex crude oil prices almost stable and trading around $ 40.50 a barrel. The US dollar index fell at noon today. The yield on the benchmark 10-year US Treasury note has declined this week and is currently around 0.6%.

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 target is pushing futures prices below solid technical support at last week’s low of $ 1,779.20. The first resistance is seen at today’s high of $ 1,818.80 and then at $ 1,825.50. The first support is seen today at the low of $ 1,802.10 and then at $ 1,800.00. Wyckoff Market Rating: 8.5

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 $ 20.00 an ounce. The next downside price breakout target for bears is to close prices below solid support at $ 18.00. The first resistance is seen at $ 20.00 and then at $ 20.25. The next support is seen at $ 19.50 and then at $ 19.25. Wyckoff Market Rating: 8.5.