Gold sees price gains, silver soars to 13-year high

(Kitco News) – Gold prices are posting good gains and hit a four-week high in early U.S. trading Thursday. Silver prices are sharply up and hit a 13-year high. Risk appetite in the general marketplace is still shaky, which continues to produce safe-haven buying of gold and silver. The charts have turned more bullish for both metals, which is also inviting the technical traders to the long sides. August gold was last up $18.50 at $3,418.10. July silver prices were last up $1.437 at $36.08.

Asian and European stocks were mixed overnight. U.S. stock indexes are pointed to slightly higher openings today in New York.

The European Central Bank cut its main interest rate by 0.25% today, which was widely expected.

In overnight news, the Swiss-Singapore-based commodity trading house Trafigura warned of near-term commodity market volatility due to geopolitical and macroeconomic instability, and the threat of increasing inflation. The firm expects the higher volatility to last a while.

The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures prices are near steady and trading around $63.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.37%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, the international trade report, revised productivity and costs, the global services PMI, and monthly retail chain sales results.

Technically, August gold futures bulls have the solid overall near-term technical advantage.  Bulls’ next upside price objective is to produce a close above solid resistance at the May high of $3,477.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at $3,450.00 and then at $3,477.30. First support is seen at $3,400.00 and then at the overnight low of $3,384.50.

July silver futures bulls have the strong overall near-term technical advantage after seeing a bullish upside “breakout” from a trading range on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $37.50. The next downside price objective for the bears is closing prices below solid support at $34.00. First resistance is seen at the overnight high of $36.15 and then at $36.50. Next support is seen at $35.50 and then at $35.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com