Gold, silver power still higher; more price upside likely

(Kitco News, Mon. Oct. 21st, 2024)  – Gold and silver futures prices are solidly up in early U.S. trading Monday, with gold hitting another record high of $2,754.50, basis December Comex futures, while silver futures notched a 12-year high. Safe-haven demand, worries about “de-dollarization” and bullish technicals continue to push both precious metals prices higher. December gold was last up $23.20 at $2,753.20 and December silver was up $1.146 at $34.38.

Asian and European stock indexes were mixed to weaker overnight. U.S. stock indexes are pointed to modestly lower openings when the New York day session begins, on profit-taking from recent gains. The stock and financial markets are most of the way through September and October and are so far in pretty good shape. Those two months have, at times, proven to be very rocky for financial markets.

In overnight news, China announced slightly bigger-than-expected cuts to both its one-year and five-year prime loan rates. Still, Chinese authorities have failed to meet market expectations when it comes to fiscal stimulus. “Investors have lived on hope, but suffered only disappointment since last month when there were assurances that money would be forthcoming to help shore up China’s troubled property market,” said broker SP Angel.

Gold prices hit another record high overnight, at $2,751.70, basis December Comex futures. The recent rallies in gold and silver come as Russia hosts the BRIC summit on Tuesday, attended by China’s Xi Jinping and other developing nations’ officials. Russian President Putin wants a new global financial payments system to counter the U.S. dollar dominance of global foreign reserves. Around 58% of central bank foreign-reserve currencies currently are in dollar-denominated assets. Gold stands to benefit from more “de-dollarization” by BRICS and other countries.

The key outside markets today see the U.S. dollar index slightly higher. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.10%. Crude oil prices are higher and trading around $70.75 a barrel.

U.S. economic data due for release Monday includes leading economic indicators, a monthly Treasury statement of receipts and outlays.

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 $2,650.00. First resistance is seen at $2,775.00 and then at $2,800.00. First support is seen at the overnight low of $2,734.60 and then at $2,708.70.

December silver futures bulls have the strong overall near-term technical advantage. Prices are in an accelerating 2.5-month-old uptrend 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 $32.00. First resistance is seen at $34.75 and then at $35.00. Next support is seen at the overnight low of $33.74 and then at $33.225.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com