Gold bulls keep tight grip as new record highs continue

(Kitco News, Wed. Sep. 25th, 2024) – Gold prices are a bit higher in midday U.S. trading Wednesday and hit another record high of $2,694.90, basis December Comex futures. Silver prices are weaker on a corrective pullback from recent good gains. Safe-haven bids are keeping a floor under the two precious metals markets. Technical charts remain firmly bullish for gold and silver, too. December gold was last up $2.80 at $2,679.70 and December silver was down $0.28 at $32.15.

The Israel-Hezbollah military conflict has escalated recently, with the Israel air strikes in Lebanon this week being called the heaviest since 2006. Hezbollah has retaliated with missile strikes into Israel, most of which have been intercepted by Israeli defenses. Reports said Hezbollah fired one missile deep into Israel, showing off the group’s missile power. This situation is keeping safe-haven bids in gold and silver and will likely get worse before it gets better.

China stock markets rallied after further easing of China’s monetary policy by its central bank. U.S. stock indexes are pointed to slightly lower openings when the New York day session begins. The S&P 500 is near its record high. China on Tuesday cut the interest rate on its one-year medium-term lending facility to 2.0% from 2.3%. The move was not a surprise. The People’s Bank of China also lent 300 billion yuan ($43 billion) to financial institutions. More central bank monetary policy easing for the listing Chinese economy is expected. That’s bullish for the raw commodity sector, including the metals, from a demand perspective coming out of the world’s second-largest economy.

Meantime, Sweden’s central bank, the Riksbank, today lowered its key policy rate by 0.25%, to 3.25 percent. More Riksbank rate cuts are expected this year.

The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are solidly lower and trading around $69.50 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching 3.77%.

Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,572.50. First resistance is seen at the overnight contract high of $2,694.960 and then at $2,700.00. First support is seen at $2,650.00 and then at this week’s low of $2,638.60.

December silver futures bulls have the solid overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the May high of $33.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at the overnight high of $32.61 and then at $33.00. Next support is seen at $32.00 and then at $31.50.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com