Gold powers to another all-time high; silver bulls step on the gas

(Kitco News, Sep. 24th, 2024) – Gold prices are posting good gains in midday U.S. trading Tuesday and hit another record high of $2,675.70, basis December Comex futures. Silver prices are sharply up and hit a nine-week high. Safe-haven bids are boosting the two precious metals markets. Technical charts are also bullish for gold and silver, which is inviting speculators to the long sides. December gold was last up $20.40 at $2,673.00 and December silver was up $1.20 at $32.295.

The precious metals received some more bullish news today as China’s central bank lowered a key rate, the reserve requirement ratio for banks, by 0.5% in bid to support China’s stock and property markets. That’s the biggest easing move by China since the pandemic. The PBOC easing will likely prompt better demand for raw commodities, including the metals, from the world’s second-largest economy. Copper prices rallied sharply on the news. The People’s Bank of China said it expects another 20-50 basis-point cut by year-end. The PBOC also lowered its short-term, seven-day RRP rate to 1.5% from 1.7%. PBOC governor Pan said the measures would add $142 billion in liquidity to the banking system. Reads a Barron’s headline today: “China’s stimulus is a big deal.”

Meantime, the Israel-Hezbollah military conflict is heating up rapidly, with the Israel air strikes in Lebanon this week being called the heaviest since 2006. This situation is keeping a safe-haven bid in gold and silver.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are higher and trading around $71.25 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching around 3.76%.

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 $2,750.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,500.00. First resistance is seen at the contract high of $2,675.70 and then at $2,685.00. 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 and gained more power today. 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 July high of $32.46 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