Strongly bullish charts suggest still more upside for gold, silver

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(Kitco News) Gold and silver prices are higher in midday U.S. trading Monday, with silver prices sharply up and scoring an 11-month high. Buying interest in both precious metals continues to be fueled by very bullish charts and worrisome geopolitical elements that are lingering just off the front burner of the marketplace. August gold futures were last up $10.60 an ounce at $1,812.60. September Comex silver prices were last up $0.662 at $19.715 an ounce. 

Global stock markets were mostly up in overnight trading. The U.S. stock indexes are solidly higher at midday. Much of the marketplace on Monday is once again looking past the Covid-19 pandemic, which saw a record number of daily infections reported over the weekend in Florida, and instead looking at improving global economies and generally better-than-expected economic data being reported as businesses around the globe are reopening from their springtime lockdowns. 

Gold and silver market bulls are especially impressed with their markets’ ability to rally in the face of rising stock markets. It could very well also be that gold and silver traders reckon improving global economies will mean increased consumer demand for gold and silver—especially from China and India.

Rising tensions between the U.S. and China are not yet back on the front burner of the marketplace, but they are close. The world’s two largest economies continue to trade barbs and levy sanctions on each other.

It’s a busy week for the marketplace, as corporate earnings, central bank meetings and GDP data from China are due. There was no major U.S. economic data due for release Monday, but pace picks up rapidly Tuesday.

The important outside markets today see Nymex crude oil prices near steady and trading around $40.50 a barrel. The U.S. dollar index is down at midday today. The yield on the benchmark U.S. Treasury 10-year note has dipped this week and is currently around the 0.6% level. 

Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,779.20. First resistance is seen at today’s high of $1,818.80 and then at $1,825.50. First support is seen at today’s low of $1,802.10 and then at $1,800.00. Wyckoff’s Market Rating: 8.5

September silver futures bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $20.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $18.00. First resistance is seen at $20.00 and then at $20.25. Next support is seen at $19.50 and then at $19.25. Wyckoff’s Market Rating: 8.5.