Gold, silver boosted by falling USDX, US bond yields, rising oil

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(Kitco News) – Gold and silver prices are higher, with silver sharply up and hitting a five-week high in midday US trading Monday. The precious metals were boosted today by a weaker US dollar index and falling US Treasury bond yields, as well as a rally in the crude oil market today. Some modest safe-haven demand was also featured in gold and silver. October gold futures were last up from $12.70 to $1,793.00. September Comex silver futures were last up to $0,808 at $20,645 an ounce.

Global stock markets were mixed to slightly up overnight. US stock indexes are weaker at midday. Corporate earnings reports will be in focus for stock traders this week. We are in the “dog days” of summer, whereby trading volumes in many markets wane traders and investors to step away from markets and take family vacations. Much of Europe is on vacation during August. Markets are likely to be mostly quiet until after the US Labor Day holiday in early September.

Traders are still watching China’s military exercises near Taiwan. The Wall Street Journal headline reads, “China’s military exercises showcase modern fighting force preparing for possible war in the Taiwan Strait.” This news is also likely keeping a modest safe-haven bid in the gold market.



The key outside markets today see Nymex crude oil prices higher and trading around $90.50 a barrel. Crude oil last Friday hit a 4.5-month low. The US dollar index is lower at midday. The yield on the 10-year US Treasury note is fetching around 2.8%. The 2-year US T-note yield is 3,209, which has the yield curve still inverted and is one clue the US is in or headed toward economic recession.

Technically, October gold futures bears still have the overall near-term technical advantage. However, the fledgling price uptrend is still in place on the daily bar chart to suggest a market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,720.00. First resistance is seen at the August high of $1,801.00 and then at 1,825.00. First support is seen at today’s low of $1,776.20 and then at $1,769.50. Wyckoff’s Market Rating: 4.0.

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures prices hit a five-week high today. September silver futures bears have the overall near-term technical advantage. However, prices are in a fledgling uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at today’s high of $20,745 and then at $21.00. Next support is seen at $20.51 and then at $20.00. Wyckoff’s Market Rating: 4.0.

September NY copper closed up 450 points at 359.70 cents today. Prices closed nearer the session high and hit a five-week high today. The copper bears have the overall near-term technical advantage. However, prices are trending up on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 330.00 cents. First resistance is seen at today’s high of 362.25 cents and then at 370.00 cents. First support is seen at today’s low of 353.15 cents and then at 350.00 cents. Wyckoff’s Market Rating: 3.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/or damages arising from the use of this publication.

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