(Kitco News) – Gold and silver prices are solidly up in midday U.S. trading Wednesday, as bullish traders once again did some perceived bargain hunting and stepped in to buy the early price weakness seen in both metals. Today’s gains in gold and silver were especially impressive as the came amid upbeat trader and investor risk sentiment that is pushing global stock markets higher. October gold futures were last up $25.30 an ounce at $1,940.90. September Comex silver prices were last up $0.727 at $27.00 an ounce.
Gold saw some added selling pressure early this morning when the U.S. durable goods orders report came in much better than expected, at up 11.2% in July, from expectations of a rise of 5.0%. The report sent U.S. Treasury yields higher, also a near-term negative for the metals markets.
Today’s gains in gold and silver further suggest that the metals, as well as other raw commodity markets, are seeing stepped-up buying interest due in part to notions of rising price inflation in the coming months.
Global stock markets were mixed overnight. The U.S. stock indexes are mixed near midday. The Nasdaq again hit a record high today. The U.S. stock indexes are pausing at mid-week after hitting record highs in the Nasdaq and S&P 500 this week. The past several weeks have seen generally less volatile and quieter trading conditions, as U.S. and European traders and investors focus more on family vacations and less on markets. Look for more active trading in many stock and financial markets following the U.S. Labor Day holiday.
Traders and investors are watching two big events this week: the U.S. Republican national convention in which President Trump will accept his party’s nomination. So far the convention has not been markets-sensitive. Also, the annual Federal Reserve Symposium that has been traditionally held in Jackson Hole, Wyoming but this year will be virtual, begins Thursday. Fed Chairman Jerome Powell is scheduled to speak Thursday morning. Traders will closely scrutinize his comments on the strength of the U.S. economic recovery and prospects for growth in the coming months.
The important outside markets today see Nymex crude oil prices near steady and trading around $43.35 a barrel. Hurricane Laura in the Gulf of Mexico is bearing down on Texas and Louisiana and has shut in much of the U.S. Gulf coast oil and gas installations. That has pushed gasoline futures prices to a five-month high this week. The U.S. dollar index is near steady but not far above its recent two-year low. The yield on the U.S. Treasury 10-year note has risen to around 0.7% this week, in another sign of rising confidence in the marketplace.
Technically, October gold futures prices scored a bullish “outside day” up on the daily bar chart today. The gold bulls have the firm overall near-term technical advantage and regained some momentum today. Prices are 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 $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the August low of $1,865.00. First resistance is seen at this week high of $1,961.90 and then at $1,975.00. First support is seen at $1,900.00 and then at $1,875.00. Wyckoff’s Market Rating: 7.0
September silver futures bulls still have the firm overall near-term technical advantage amid a five-month-old price uptrend in place on the daily bar chart. A bullish symmetrical triangle pattern has also formed on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the August high of $29.915 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at this week’s high of $27.34 and then at $28.00. Next support is seen at $26.095 and then at $26.00. Wyckoff’s Market Rating: 7.0.
September N.Y. copper closed up 290 points at 296.35 cents today. Prices closed nearer the session high today. The copper bulls have the solid overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 310.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 276.90 cents. First resistance is seen at 300.00 cents and then at the August high of 302.95 cents. First support is seen at this week’s low of 291.15 cents and then at 288.00 cents. Wyckoff’s Market Rating: 7.5.
