Gold, Silver See Price Advances Amid Keener Risk Aversion

(Kitco News, Thirs. July 8th,2021) – Gold and silver prices are higher in early U.S. trading Thursday, on some safe-haven buying amid a more uncertain marketplace late this week. Gold notched a three-week high overnight. August gold futureswere last up $10.90 at $1,813.10 and September Comex silver was last up $0.021 at $26.155 an ounce.

Global stock markets were mostly lower overnight. The U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins. Keener risk aversion has returned to the marketplace late this week. Featured in the marketplace this week is traders unwinding their “inflation” positions. That means selling commodity markets and buying U.S. Treasuries. Nymex crude oil futures are lower today and trading around $71.50 a barrel after hitting a six-year high of $76.98 earlier this week. This week’s big losses in crude oil have created chart clues that suggest a market top is in place. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.253%–near a five-month low. Bond prices and yields move in the opposite direction. In Germany, the 10-year bund yield fell to minus 0.339% Thursday.

Covid-19 deaths worldwide topped 4 million this week and the Delta virus is continuing to spread. The marketplace is once again starting to pay more attention to this matter, after a few months of enjoying not having the pandemic near the front burner. Tokyo is in a near state of emergency in trying to deal with the virus as the intense spotlight of the Olympics is set to shine on Tokyo.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the weekly DOE liquid energy stocks report, the monthly chain store sales index and consumer credit.

Technically, gold futures bulls and bears are on a level overall near-term technical playing field but the bulls have momentum on their side now. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,750.10. First resistance is seen at the overnight high of $1,818.70 and then at $1,825.00. First support is seen at $1,800.00 and then at the overnight low of $1,796.30. Wyckoff’s Market Rating: 5.0

The silver bulls and bears are on a level overall near-term technical playing field. Silver bulls’ next upside price objective is closing September futures prices above solid technical resistance at $28.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the June low of $25.58. First resistance is seen at Wednesday’s high of $26.545 and then at this week’s high of $26.91. Next support is seen at the overnight low of $25.935 and then at $25.58.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.con