Bullish Indicators Suggest Gold and Silver Have More Room For Growth
Midday Monday US time Gold and silver were trading higher, with silver prices up and hitting an 11-month high. Interest in buying both metals keeps on rising with bullish indicators and concerns over geopolitical events on the horizon. August gold futures were up by 10.60 USD an ounce at 1,812.60 USD and September’s Comex silver prices were also up by 0.662 USD at 19.715 USD an ounce.
Worldwide markets were generally up in the last 24 hours of trading. The US stock indexes were higher at midday. Monday saw a large part of the markets again looking beyond the Coronavirus outbreak, which saw a new daily record of infections over the weekend in Florida, and instead of looking forward as we see better-than-expected economic data being reported as businesses around the world are reopening from the lockdowns measures.
Gold and silver bulls are particularly impressed with their ability to recover in the face of rising stock markets. Additionally, it could be that gold and silver traders believe that improving worldwide economies will mean increased consumer demand for gold and silver.
Increasing tensions between the U.S. and China are not yet back to their highest point, but they are on the horizon. The world’s two largest economies continue to fight over trade and levy sanctions at each other.
It’s been a very active week for the markets, as corporate profits, central bank meetings, and China’s GDP data expected shortly. With no significant US economic data due o be released on Monday, however, the pace of the markets picks up rapidly today.
Outside the metals market, today sees Nymex crude oil prices stable and trading around 40.50 USD a barrel. The USD index is down midday today. The yield on the benchmark US Treasury 10-year note has dropped this week and is currently around the 0.6% mark.
Technically, the gold bulls have a solid technical advantage overall for the short-term. The bulls next objective is to produce an upside price close in August futures above strong resistance at 1,850.00 USD. The bears next short-term objective is pushing a downside price below strong technical support at last week’s low of 1,779.20 USD. The first resistance was seen at today’s high of 1,818.80 USD and then at 1,825.50 USD. The first support was seen at today’s low of 1,802.10 USD and then at 1,800.00 USD.
September silver futures bulls have a strong short-term technical advantage. Silver bulls next objective is a closing upside price above strong technical resistance at 20.00 USD an ounce. The next bear objective is a downside closing price below strong support at 18.00 USD. The first resistance was seen at 20.00 USD and then at 20.25 USD. The next support was seen at 19.50 USD and then at 19.25 USD.
