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(Kitco News) – Prayed Y silver prices are higher, with silver strongly higher and hitting a five-week high in midday US trade on Monday. Precious metals were buoyed today by a weaker US dollar index and falling US Treasury yields, as well as a rally in the crude oil market today. There was also modest safe haven demand in gold and silver. october gold futures they last rose $12.70 to $1,793.00. September Comex silver futures were up $0.808 at $20.645 an ounce.
Global stock markets were mixed to slightly higher overnight. US stock indices are weakest at midday. Corporate earnings reports will be in the spotlight for stock traders this week. We are in the “dog days” of summer, with trading volumes in many markets declining as traders and investors move away from the 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 continue to watch China’s military exercises near Taiwan. A Wall Street Journal headline reads: “China’s Military Exercises Show Modern Fighting Force Preparing for Potential War in Taiwan Strait.” This news is also likely to keep a modest safe haven bid in the gold market.
Key outside markets today see Nymex Crude Oil prices higher and trading around $90.50 per barrel. Crude oil hit a 4.5-month low last Friday. The US dollar index is lower at noon. The yield on the US 10-year Treasury note is reaching around 2.8%. The 2-year US T-note yield is 3,209, which has the yield curve still inverted and is a clue that the US is in or headed for an economic recession.
Technically, the October gold futures bears still have the overall short-term technical advantage. However, there is still a bullish price trend brewing on the daily bar chart which suggests that the market is bottoming out. The next bullish price objective for the Bulls is to produce a close above solid resistance at $1,850.00. The bears’ next short-term downside price objective is to push futures prices below solid technical support at $1,720.00. The 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 $1,769.50. Wyckoff Market Rating: 4.0.
September silver futures prices hit a five-week high today. September silver futures bears have the overall short-term technical advantage. However, prices are in an incipient uptrend on the daily bar chart. The next bullish price objective for the Silver Bulls is to close prices above solid technical resistance at $22.00. The next downside price objective for the bears is to close prices below the solid support at $19.00. The first resistance is seen at today’s high of $20.745 and then at $21.00. The next support is seen at $20.51 and then $20.00. Wyckoff Market Rating: 4.0.
September NY copper closed up 450 points at 359.70 cents today. Prices closed closer to the session high and hit a five-week high today. Copper bears have the overall short-term technical advantage. However, prices are trending up on the daily bar chart. The next upside price objective for the copper bulls is to push and close prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is to close prices below solid technical support at 330.00 cents. First resistance is seen at today’s high of 362.25 cents and then 370.00 cents. First support is seen at today’s low of 353.15 cents and then 350.00 cents. Wyckoff Market Rating: 3.5.
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