(Kitco News) – Gold and silver prices are firmer in midday U.S. trading Monday, with gold notching a three-week high and silver a four-week high overnight. Short covering from futures traders is featured in both metals, with cash market traders also doing some perceived bargain-basement buying after gold prices hit a 15-month low and silver a two-year low in July. Some technical buying is also featured to start the month of August, as the near-term charts are looking a bit friendlier for gold and silver. October gold futures were last up $4.40 at $1,776.00. September Comex silver futures were last up $0.113 at $20.305 an ounce.
Global stock markets were mostly higher overnight. U.S. stock indexes are slightly up at midday. The U.S. indexes posted a very good month of July and are in near-term price uptrends on the daily bar charts, amid better trader and investor risk appetite in the marketplace.
The key outside markets today see Nymex crude oil prices sharply down and trading around $93.00 a barrel. The big losses in oil did limit the upside in the metals today. Traders are awaiting an OPEC meeting Wednesday. The U.S. dollar index is solidly lower in midday U.S. trading, which supported the metals markets.
Technically, October gold futures prices hit a three-week high early on today. Short covering and bargain hunting were featured. The gold futures bears still have the overall near-term technical advantage. However, recent gains have negated a price downtrend on the daily bar chart and last Friday’s bullish weekly high close is another clue that a market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at today’s high of $1,781.80 and then at $1,790.00. First support is seen at today’s low of $1,764.10 and then at $1,750.00. Wyckoff’s Market Rating: 3.0.
September silver futures prices hit a four-week high today. September silver futures bears have the overall near-term technical advantage. However, a price downtrend has been negated and last Friday’s bullish weekly high close are clues that a market bottom is in place. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $21.50. 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 $20.51 and then at $20.75. Next support is seen at $20.00 and then at last Friday’s low of $19.825. Wyckoff’s Market Rating: 3.0.
September N.Y. copper closed down 545 points at 351.95 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term technical advantage. However, a steep six-week-old price downtrend on the daily bar chart has been negated and prices are starting to trend up. 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 the July low of 313.15 cents. First resistance is seen at today’s high of 359.70 cents and then at 365.00 cents. First support is seen at 345.00 cents and then at 340.00 cents. Wyckoff’s Market Rating: 3.0.
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