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(Kitco News) – Gold and silver futures prices are moderately up in early U.S. trading Wednesday. Support comes from a weakening U.S. dollar index that hit a six-week low overnight. Weaker U.S. stock indexes in pre-New York trading are also aiding the precious metals bulls. December gold futures were last up $6.90 at $1,922.40 and December Comex silver was last up $0.18 at $25.16 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are set to open the New York day session a bit weaker. It now appears less likely the U.S. Congress and the Trump administration can come to agreement on a new Covid-19 stimulus package before the U.S. elections in less than two weeks. All sides are still in communication regarding getting some kind of a stimulus package for Americans, however. The U.S. Senate Republicans could stymie any deal that is agreed upon by the House and the Trump administration. Corporate earnings reports are also in focus at present.

Rising Covid-19 cases in the U.S., Europe and South America continue to dampen trader and investor enthusiasm at mid-week. Drug makers are rushing for a successful vaccine, but none appear ready for public consumption any time soon.

In other news, China recently eased its rules on banks trading in the China currency, the yuan, allowing the currency to strengthen. Reports say China is promoting the yuan as the new world reserve currency. The yuan today rose nearly 0.5% to its strongest level against the U.S. dollar since July of 2018. China continues to recover more rapidly from Covid-19 as the U.S. and Europe see rising cases. The Yuan has strengthened more than 7% against the greenback since late May. “In addition to dollar weakness, the yuan is being underpinned by a wide interest-rate premium over the rest of the world. China’s 10-year government bond yields are around 3.2% as the gap versus the yield on U.S. Treasuries hovers around the highest on record,” said an SP Angel email dispatch this morning.

The important outside markets early today see the U.S. dollar index lower again and hitting a six-week low. Nymex crude oil prices are lower and trading around $41.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is 0.8% today.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly DOE liquid energy stocks report, and the Federal Reserve’s beige book. Several Federal Reserve officials also are slated to speak today.

Technically, the December gold futures bulls have the overall near-term technical advantage amid recent choppy and sideways trading. Bulls are working on a fledgling price uptrend. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at the October high of $1,939.40. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,851.00. First resistance is seen at the overnight high of $1,926.90 and then at the October high of $1,939.40. First support is seen at the overnight low of $1,911.60 and then at $1,900.00. Wyckoff’s Market Rating: 6.5

December silver futures bulls have the overall near-term technical advantage and are working on a price uptrend. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.965. First resistance is seen at the overnight high of $25.30 and then at the October high of $25.71. Next support is seen at the overnight low of $24.775 and then at $24.405. Wyckoff’s Market Rating: 6.5.

Author: Jim Wyckoff

Source: Kitco: Price gains for gold as U.S. dollar continues to erode

(Kitco News)Gold and silver prices prices are moderately down in midday U.S. trading Wednesday, pressured by a rebound in the U.S. dollar index late this week after it hit a two-year low earlier in the week. Also, lower crude oil prices that dropped to a four-week low today are a bearish outside market force working against the precious metals bulls. The safe-haven metals bulls are a bit perplexed by their metals’ inability to rally today in the face of a big sell off in the U.S. stock market. However, metals did come off their daily lows as U.S. equities dropped. October gold futures were last down $6.80 at $1,930.10. December Comex silver prices were last down $0.395 at $27.00 an ounce.

This morning’s weekly jobless claims report showed new claims of 881,000, which was below expectations for a rise of 950,000. Gold and silver prices ticked down after the better-than-expected jobless claims reading. Traders are now awaiting Friday’s employment situation report for August from the U.S. Labor Department, expected to show non-farm payrolls gains of around 1.3 million.

Global stock markets were mixed overnight. The Nasdaq and S&P 500 hit record highs Wednesday and were due for normal corrective pullbacks in their existing uptrends. There also may be a bit more risk aversion in the marketplace Thursday, on reports the U.S. will impose restrictions on its Chinese diplomats, in retaliation for China doing the same to its U.S. diplomats.

On the bright side, the London Financial Times reported the Covid-19 herd immunity may be closer than previously thought. The story said tests for antibodies may be dramatically underestimating the proportion of people who have been infected with the virus, according to scientists. Other reports also said U.S. health officials are saying a vaccine could be ready for distribution by November 1.

The important outside markets today see Nymex crude oil prices weaker and hitting a four-week low–trading around $41.25 a barrel. The U.S. dollar index is higher again today on a corrective bounce after hitting a two-year low Tuesday. The yield on the U.S. Treasury 10-year note is trading around 0.62% today.

Technically, October gold futures bulls still have the firm overall near-term technical advantage amid recent choppy trading. Prices are still in a five-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at this week’s high of $1,992.50. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at today’s high of $1,948.40 and then at Wednesday’s high of $1,972.40. First support is seen at today’s low of $1,919.70 and then at $1,915.00. Wyckoff’s Market Rating: 7.0

December silver futures bulls have the firm overall near-term technical advantage amid a five-month-old price uptrend still in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of $29.235 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at $27.50 and then at today’s high of $27.89. Next support is seen at today’s low of $27.01 and then at $26.50. Wyckoff’s Market Rating: 7.0.

December N.Y. copper closed down 445 points at 297.60 cents today. Prices closed nearer the session low today and saw more profit taking after hitting a 28-month high Tuesday. Prices today also scored a bearish “outside day” down on the daily bar chart. The copper bulls still have the firm overall near-term technical advantage as prices are still in an uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at this week’s high of 309.45 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 279.60 cents. First resistance is seen at 300.00 cents and then at today’s high of 304.20 cents. First support is seen at today’s low of 295.35 cents and then at 292.50 cents. Wyckoff’s Market Rating: 7.0.

Author: Jim Wyckoff

Source: Kitco: Gold, silver weaker despite big sell off in U.S. stock mkt.

(Kitco News) – Gold and silver prices are sharply lower in midday U.S. trading Tuesday. Gold has fallen back below $2,000. Traders and investors put risk back on the table Tuesday, due in part to news overnight that Russia has approved a Covid-19 vaccine. Russian President Vladimir Putin told reporters the vaccine has been given to his daughter. However, global health experts are very skeptical and cautioning that the Russian vaccine is premature because it has not gone through full trials that the U.S. and other countries require for approval. October gold futures were last down $85.20 an ounce at $1,945.10. September Comex silver prices were last down $2.571 at $26.685 an ounce.

As I said in my Kitco Special Report I put out earlier today, which included longer-term weekly charts on gold and silver: On a day when gold prices were down around $85 an ounce on the day and silver down over $2, many precious metals market bulls may be squeamish, wondering, “Are market tops in place?” Of course nobody knows the answer to that question and there are all kinds of opinions and speculation about that topic—especially today.

The prudent trader and investor should look at some price perspectives from action seen over the last few months, to get a bigger- picture view of where prices have been and where they may be going. On the weekly continuation charts for nearby Comex gold and silver futures markets, prices remain in strong longer-term uptrends, and from a weekly chart perspective today’s losses don’t appear extreme. That’s because gold and silver prices have seen major appreciation over the past few months and from a longer-term technical perspective today’s declines are hardly a minor speed bump.

Still, trading the rest of this week will be extra critical for both gold and silver markets. How the markets close on Friday will be very telling. If gold and silver futures prices close on Friday at or near their weekly lows, then such would be a significant early clue these markets have put in at least near-term tops. If the markets can recover over the next few days and finish the week well off of their weekly lows, bulls could be back in business soon.

Global stock markets rallied Tuesday and the U.S. stock indexes are higher at midday. Besides the Russian Covid vaccine news, there are reports the U.S. Congress and President Trump may be inching a bit closer to agreeing upon a new government stimulus package for Americans, and that’s also a positive for marketplace sentiment. Also, the new Covid-19 cases in the U.S. are starting to drop just a bit.

The important outside markets today see Nymex crude oil prices slightly firmer and trading around $42.00 a barrel. The U.S. dollar index is modestly down. The yield on the benchmark 10-year U.S. Treasury note is presently around 0.6%.

Technically, October gold futures are seeing the first big downside correction gold has seen during this big bull run. No chart major damage has been inflicted so far but more strong selling pressure this week would likely damage the charts. Prices just last Friday hit a record high of $2,078.00. The bulls still have the solid overall near-term technical advantage. Prices are still in a two-month-old uptrend on the daily bar chart. Gold bulls’ next upside near-term price objective is to produce a close above technical resistance at the record high of $2,078.00. Bears’ next near-term downside price objective is pushing prices below solid technical support at $1,900.00. First resistance is seen at $1,986.00 and then at $2,000.00. First support is seen at today’s low of $1,939.30 and then at $1,912.00. Wyckoff’s Market Rating: 8.0

September silver futures prices were near the session low at midday. Prices just last Friday hit a more-than-seven year high of $29.915. Today’s price action is so just a big downside correction in an uptrend. No chart major damage has been inflicted yet, but more strong selling pressure this week would likely damage the charts. The bulls still have the solid overall near-term technical advantage. Prices are still in a nearly five-month-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $30.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at $27.50 and then at $28.00. Next support is seen at $26.50 and then at $26.00. Wyckoff’s Market Rating: 8.0.

September N.Y. copper closed up 135 points at 287.50 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. However, a 4.5-month-old uptrend on the daily bar chart has been negated. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 270.00 cents. First resistance is seen at Monday’s high of 288.50 cents and then at last week’s high of 293.95 cents. First support is seen at today’s low of 283.90 cents and then at 280.00 cents. Wyckoff’s Market Rating: 7.0.

Author: Jim Wyckoff

Source: Kitco: Gold, silver suffer steep corrective pullbacks

(Kitco News) – Gold prices are again sharply higher and hit a record high of $2,064.90, basis October Comex futures, in early U.S. trading Thursday. Silver prices are also sharply higher and hit a more-than-seven-year high of $28.54, basis September Comex futures. October gold futures were last up $25.00 an ounce at $2,062.10. September Comex silver prices were last up $1.45 at $28.34 an ounce.

Importantly, while there are no early chart clues to suggest the gold and silver markets are close to major tops, both are now getting short-term overbought, technically, and are due for downside corrections in the uptrends. And remember that with the higher volatility and bigger daily price gains seen at present, there will also be bigger downside corrections when they come.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. U.S. equities traders remain upbeat due in part to notions the U.S. Congress will soon come through with a new stimulus package for Americans dealing with the economic hardship of the Covid-19 pandemic.

Traders today closely examined the weekly U.S. jobless claims report, which came in at 1.1 million new claims, which is less than the 1.4 million expected. Today’s report is considered somewhat upbeat, amid notions the U.S. economic recovery is slowing down.

The Bank of England left is monetary policy unchanged at is regular meeting today, with the BOE saying negative interest rates may not be the right tool for spurring economic growth in the U.K. economy.

The U.S.-China political tensions remain near a boil, as U.S. Secretary of State Pompeo has urged Americans not to use technology products owned by China, including Alibaba, Huawei, Tencent and Baidu.

The key U.S. data point of the week will be Friday’s jobs report for July from the Labor Department. The non-farm payrolls number is forecast to be up by around 1.25 million after rising by 4.8 million in June. However, don’t be surprised to see a miss from the forecasts, to likely move the markets.

The important outside markets today see Nymex crude oil prices weaker and trading around $42.00 a barrel. The U.S. dollar index is slightly lower today and hit a two-year low overnight. The yield on the benchmark 10-year U.S. Treasury note is presently around 0.526% and near a record low.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report and monthly retail chain store sales.

Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $2,200.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at the overnight high of $2,064.90 and then at $2,100.00. First support is seen at the overnight low of $2,037.20 and then at Wednesday’s low of $2,015.50. Wyckoff’s Market Rating: 10.0

September silver futures bulls have the strong overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $30.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $25.00. First resistance is seen at the overnight high of $28.54 and then at $29.00. Next support is seen at $28.00 and then at $27.00. Wyckoff’s Market Rating: 10.0.

Author: Jim Wyckoff

Source: Kitco: Gold price nearing $2,100 as bulls keep foot on the gas

(Kitco News)Gold prices are sharply higher and have hit a new record high of $2,004.30, basis October Comex futures, in midday U.S. trading Tuesday. Silver prices are also sharply up and are poised to close at a seven-year high close today. Both precious metals are continuing to see strong support from safe-haven demand amid the worrisome rise in Covid-19 infections, geopolitics and concerns about problematic price inflation in the coming months. The charts remain solidly bullish, which is also inviting the technically based traders to the long side of those markets. Importantly, there are no early warning technical signals to suggest market tops are close at hand in both metals. Thus, the path of least resistance for them will remain higher. October gold futures were last up $29.10 an ounce at $2,003.90. September Comex silver prices were last up $1.333 at $25.74 an ounce.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are mixed at midday.

In overnight news, the central bank of Australia kept its monetary policy unchanged, but the bank said monetary stimulus and low interest rates will be required for some time to come.

The key U.S. data point of the week will be Friday’s jobs report for July from the Labor Department. The non-farm payrolls number is forecast to be up by around 1.25 million after rising by 4.8 million in June. However, don’t be surprised to see a miss from the forecasts, to likely move the markets.

The important outside markets today see Nymex crude oil prices firmer and trading around $41.60 a barrel. The crude oil market bulls have seen their price uptrend on the daily chart stall out and turn into sideways and choppy trading. The U.S. dollar index is slightly weaker today. The yield on the benchmark 10-year U.S. Treasury note is presently around 5.4%.

Technically, October gold futures bulls have the strong overall near-term technical advantage, to suggest still more upside in the near term. Prices are in an accelerating two-month-old uptrend on the daily bar chart. Gold bulls’ next upside near-term price objective is to produce a close above technical resistance at $2,100.00. Bears’ next near-term downside price objective is pushing prices below solid technical support at $1,912.00. First resistance is seen at $2,025.00 and then at $2,050.00. First support is seen at today’s low of $1,971.00 and then at this week’s low of $1,963.50. Wyckoff’s Market Rating: 10.0

September silver futures bulls have the strong overall near-term technical advantage and gained more power today. Prices are in a 4.5-month-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the July high of $26.275 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $26.00 and then at $26.275. Next support is seen at $25.00 and then at today’s low of $24.24. Wyckoff’s Market Rating: 9.5.

September N.Y. copper closed down 185 points at 289.35 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage. However, a 4.5-month-old uptrend on the daily bar chart is in jeopardy. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at this week’s high of 292.50 cents and then at last week’s high of 294.35 cents. First support is seen at today’s low of 287.50 cents and then at 285.00 cents. Wyckoff’s Market Rating: 7.0.

Author: Jim Wyckoff

Source: Kitco: Gold price powers above $2,000; bulls want more

(Kitco News) – Gold prices are steady to slightly higher in early U.S. trading Monday but did hit another record high of $1,997.00, basis October Comex futures. Silver prices are also firmer. Same story: Good safe-haven demand and bullish charts are keeping buying interest keen for the two precious metals. October gold futures were last up $2.20 an ounce at $1,976.10. September Comex silver prices were last up $0.194 at $24.415 an ounce.

Global stock markets were mixed to higher in overnight trading. The U.S. stock indexes are pointed toward mixed to mostly firmer openings when the New York day session begins. The big news in the business world is weekend reports that U.S. President Trump has given the Chinese company TikTok 45 days to sell its U.S operations, as Trump says TikTok is a national security threat to the U.S. Microsoft said Sunday it plans to by TikToc. This move by the U.S. ratcheted up another notch the U.S.-China strains. That’s bullish for the safe-haven gold and silver markets.

China’s Caixin manufacturing purchasing managers index (PMI) was reported Monday and came in at 52.8 in July versus 51.2 in June and a 51.1 reading forecast by analysts. A reading above 50.0 suggests expansion in the sector. The July number was the best since 2011 and suggests the world’s second-largest economy continues to rebound while at the same time the U.S. economy may be suffering a setback from its recovery from the Covid-19 pandemic lockdowns.

China’s central bank on Monday said it will boost its money supply and total social financing in 2020 compared to 2019, including long-term loans to small businesses and manufacturers.

Meantime, the Euro zone manufacturing PMI for July was revised up to 51.8 from 47.4 in June and a 51.1. forecast for July.

The key U.S. data point of the week will be Friday’s jobs report for July from the Labor Department. The non-farm payrolls number is forecast to be up by around 1.25 million after rising by 4.8 million in June. However, don’t be surprised to see a miss from the forecasts, to likely move the markets.

The important outside markets today see Nymex crude oil prices weaker and trading around $39.75 a barrel. The crude oil market bulls have seen their price uptrend on the daily chart stall out and turn into sideways and choppy trading. The U.S. dollar index is higher on a corrective bounce after hitting a nearly two-year low last week. These tow markets on Monday are in a daily bearish posture for the precious metals markets.

U.S. economic data due for release Monday includes the U.S. manufacturing PMI, the ISM report on business and manufacturing, construction spending, domestic auto sales, and the global manufacturing PMI.

Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight record high of $1,997.00 and then at $2,000.00. First support is seen at Friday’s low of $1,960.00 and then at $1,950.00. Wyckoff’s Market Rating: 10.0

September silver futures bulls have the strong overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of $26.275 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $25.00 and then at the overnight high of $25.275. Next support is seen at $24.00 and then at Friday’s low of $23.41. Wyckoff’s Market Rating: 9.0.

Author: Jim Wyckoff

Source: Kitco: Gold price hits another record high, closing in on $2,000

(Kitco News) Gold and silver prices are higher in midday U.S. trading Monday, with silver prices sharply up and scoring an 11-month high. Buying interest in both precious metals continues to be fueled by very bullish charts and worrisome geopolitical elements that are lingering just off the front burner of the marketplace. August gold futures were last up $10.60 an ounce at $1,812.60. September Comex silver prices were last up $0.662 at $19.715 an ounce.

Global stock markets were mostly up in overnight trading. The U.S. stock indexes are solidly higher at midday. Much of the marketplace on Monday is once again looking past the Covid-19 pandemic, which saw a record number of daily infections reported over the weekend in Florida, and instead looking at improving global economies and generally better-than-expected economic data being reported as businesses around the globe are reopening from their springtime lockdowns.

Gold and silver market bulls are especially impressed with their markets’ ability to rally in the face of rising stock markets. It could very well also be that gold and silver traders reckon improving global economies will mean increased consumer demand for gold and silver—especially from China and India.

Rising tensions between the U.S. and China are not yet back on the front burner of the marketplace, but they are close. The world’s two largest economies continue to trade barbs and levy sanctions on each other.

It’s a busy week for the marketplace, as corporate earnings, central bank meetings and GDP data from China are due. There was no major U.S. economic data due for release Monday, but pace picks up rapidly Tuesday.

The important outside markets today see Nymex crude oil prices near steady and trading around $40.50 a barrel. The U.S. dollar index is down at midday today. The yield on the benchmark U.S. Treasury 10-year note has dipped this week and is currently around the 0.6% level.

Technically, the gold bulls have the strong overall near-term 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 last week’s low of $1,779.20. First resistance is seen at today’s high of $1,818.80 and then at $1,825.50. First support is seen at today’s low of $1,802.10 and then at $1,800.00. Wyckoff’s Market Rating: 8.5

September silver futures bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $20.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $18.00. First resistance is seen at $20.00 and then at $20.25. Next support is seen at $19.50 and then at $19.25. Wyckoff’s Market Rating: 8.5.

Author: Jim Wyckoff

Source: Kitco: Strongly bullish charts suggest still more upside for gold, silver

(Kitco News) – Gold prices are modestly higher in early U.S. trading Monday, following long U.S. holiday weekend. Silver prices are posting solid gains today. The gold market bulls are faring well at present despite bullish world stock markets. August gold futures were last up $6.70 an ounce at $1,796.60. September Comex silver prices were last up $0.348 at $18.66 an ounce.

Global stock markets were mostly higher in overnight trading, led by sharp gains in Chinese shares. The U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins, with the Nasdaq index hitting another record high overnight. Once again, the surprisingly rapid recoveries in global economies from their Covid-19 beatdowns is trumping the rise in pandemic infections in many industrialized countries.

Last Friday’s solid U.S. jobs report was bolstered by a 10.4% rise in factory orders in Germany in May. Also reported Monday was the Euro zone’s retail sales for May, which rose 17.8% from April.

With summertime in full swing in the Northern Hemisphere, many traders and investors are less concerned about markets are more concerned about outdoor activities and family vacations. However, after the unofficial end of summer—the U.S. Labor Day holiday—look for focus of the markets to be on the U.S. presidential election, in which the Democratic candidate who wants to raise personal and corporate taxes is presently enjoying a comfortable lead in the polls, and how the public school systems will reopen. Those matters could be a sobering wake-up call for stock market bulls who are riding high at present.

The important outside markets today see Nymex crude oil prices slightly lower and trading around $40.50 a barrel. The U.S. dollar index is solidly lower early today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.69% level.

U.S. economic data due for release Monday includes the U.S. services purchasing managers’ index (PMI), the ISM non-manufacturing report on business, the employment trends index, and the global services PMI.

Technically, the gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at this week’s high of $1,807.50. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,754.00. First resistance is seen at $1,800.00 and then at $1,807.50. First support is seen at the overnight low of $1,779.20 and then at last week’s low of $1,766.30. Wyckoff’s Market Rating: 8.0

September silver futures bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the February high of $19.125 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the June low of $17.175. First resistance is seen at the overnight high of $18.61 and then at last week’s high of $18.85. Next support is seen at the overnight low of $18.22 and then at $18.00. Wyckoff’s Market Rating: 7.5.

Author: Jim Wyckoff

Source: Kitco: Gold, silver prices up even as global stock markets rally

(Kitco News) – Gold prices are trading modestly down in early U.S. trading Tuesday, following an upbeat U.S. employment report for June that showed more jobs growth than expected and a lower unemployment rate than expected. August gold futures were last down $6.40 an ounce at $1,773.40. September Comex silver prices were last down $0.073 at $18.15 an ounce.

The Labor Department’s employment situation report showed a non-farm payrolls rise of 4,8 million and an unemployment rate of 11.1% in June. The key non-farm payrolls number was expected to be up 3.15 million, with the unemployment rate forecast at 12.4%.

It’s a holiday-shortened U.S. trading week, as markets are closed Friday for the Independence Day holiday. Some U.S. markets will close early today. However, today is another very busy for U.S. economic data releases that are likely to move markets. Other important U.S. economic reports out on Thursday include weekly jobless claims, the international trade report, the ISM New York report on business, and manufacturers’ shipments and inventories.

Global stock markets were mostly up in overnight trading. The U.S. stock indexes are pointed toward higher openings when the New York day session begins, with the Nasdaq index hitting a record high overnight. Recent U.S. and global economic data suggests businesses’ recoveries from the Covid-19 pandemic damage to them is more rapid than initially expected. Also, the Federal Reserve’s FOMC minutes released Wednesday afternoon reiterated the Fed will likely continue to work to stimulate the U.S. economy through monetary policy measures. These bullish elements are for now outweighing the bearish specter of a Covid-19 resurgence in many U.S. states that is forcing some of those states to again shut down some of their businesses. However, there are fresh reports that a vaccine for the infection is showing promise.

In overnight news, the Euro zone’s unemployment rate up-ticked a bit in May, to 7.4% from 7.3% in April. The region’s producer price index was also released and came in down 0.6% in May and down 5% year-on-year.

The important outside markets today see Nymex crude oil prices higher and trading around $40.20 a barrel. The U.S. dollar index is weaker early today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.7% level.

Technically, the gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at this week’s high of $1,807.50. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,754.00. First resistance is seen at the overnight high of $1,785.50 and then at $1,789.00. First support is seen at this week’s low of $1,767.90 and then at $1,754.00. Wyckoff’s Market Rating: 8.0

September silver futures bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the February high of $19.125 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the June low of $17.175. First resistance is seen at the overnight high of $18.07 and then at $18.425. Next support is seen at $18.00 and then at $17.75. Wyckoff’s Market Rating: 7.0.

Author: Jim Wyckoff

Source: kitco: Gold prices back off as U.S. jobs report better than expected

(Kitco News) – Gold and silver prices are higher in early U.S. trading Monday, but down from their overnight highs that saw gold notch a five-week high. Safe-haven demand is featured to start the trading week amid a worrisome rise in Covid-19 infections around the globe. The gold and silver bulls are showing impressive strength despite world stock markets the are in solid rebounds from their springtime lows. August gold futures were last up $5.50 an ounce at $1,758.50. July Comex silver prices were last up $0.143 at $17.99 an ounce.

Global stock markets were mixed to weaker in overnight trading. U.S. stock markets are pointed toward higher openings when the New York day session begins. Traders and investors continue to weigh the positive aspect of economies continuing to come back to life and at a faster pace than most expected versus the negative aspect of a worrisome rise in Covid-19 cases worldwide, including in many states in the U.S. Importantly, the sense of the marketplace is that major central banks of the world will continue to print money if global economies show further signs of sputtering. This influx of cash into the global financial system is also supporting stock market gains despite the still seriously hobbled major economies. Many are wondering how long it will take for the negative consequences of all that easy money to show up in economies.

The important outside markets today see Nymex crude oil prices near steady and trading around $39.75 a barrel. The U.S. dollar index is weaker early today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.7% level.

U.S. economic data due for release Monday includes the Chicago Fed national activity index and existing home sales.

Technically, the gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at the April high of $1,789.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,718.00. First resistance is seen at the overnight high of $1,776.70 and then at $1,789.00. First support is seen at $1,750.00 and then at $1,740.00. Wyckoff’s Market Rating: 8.0

July silver futures bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the February high of $19.075 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at the overnight high of $18.19 and then at $18.405. Next support is seen at $17.75 and then at $17.50. Wyckoff’s Market Rating: 7.0.

Author: Jim Wyckoff

Source: Kitco: Gold prices hit 5-week high as Covid-19 cases rise

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