Gold, silver power to 9-week highs, bulls quickly back in business

By Jim Wyckoff - Kitco News

Gold and silver prices are sharply up in midday U.S. trading Monday and hit nine-week highs. The metals were boosted by perceived bargain hunting and amid bullish outside market forces that include a weaker U.S. dollar index, firmer crude oil prices, and a dip in U.S. government bond yields.

Importantly, the gold and silver bulls have quickly regained the overall near-term technical advantage and have restarted price uptrends on the daily charts. June gold futures were last up $25.00 at $1,792.60 and July Comex silver was last up $1.072 at $26.945 an ounce.

The "reflation trade" appears to be picking up steam again and that is also supporting the precious metals markets. Many raw commodity markets, including lumber, grains, livestock, and coffee are at or not far below multi-year highs.

Global stock markets were mixed overnight, with Asian shares mostly weaker and European shares mostly firmer. U.S. stock indexes are mixed at midday. U.S. traders and investors are upbeat to start the trading week, amid recent economic data that generally depicts strengthening U.S. business activity, and a drop in Covid-19 cases that suggests the pandemic is finally loosening its grip on the world's largest economy.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are up and trading around $64.20 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.614%.  

Technically, June gold futures bulls have quickly regained the overall near-term technical advantage as a five-week-old uptrend on the daily bar chart has been restarted.

Bulls' next upside price objective is to produce a close above solid resistance at $1,850.00.

Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00.

First resistance is seen at $1,800.00 and then at $1,817.60. First support is seen at $1,775.00 and then at today's low of $1,765.60. Wyckoff's Market Rating: 6.0

July silver futures bulls have quickly regained their overall near-term technical advantage. A five-week-old uptrend on the daily bar chart has been restarted Silver bulls' next upside price objective is closing prices above solid technical resistance at $28.00 an ounce.

The next downside price objective for the bears is closing prices below solid support at last week's low of $25.745. First resistance is seen at today's high of $27.08 and then at $27.50. Next support is seen at $26.58 and then at $26.00. Wyckoff's Market Rating: 6.0.

July N.Y. copper closed up 425 points at 451.10 cents today. Prices closed nearer the session high today and closed at a contract and nearly 10-year high close. The copper bulls have a strong overall near-term technical advantage.

Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 460.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 420.00 cents. First resistance is seen at the contract high of 455.10 cents and then at 460.00 cents. First support is seen at 441.55 and then at 440.00 cents. Wyckoff's Market Rating: 9.0.

The original article was written by Jim Wyckoff and published on Kitco News