Safe-haven bids, bullish charts propel gold to record high

(Kitco News, Mon. Sep. 23rd, 2024)  – Gold prices are a bit higher in early U.S. trading Monday and hit another record high of $2,656.10, basis December Comex futures. Silver prices are lower on profit taking after recent good gains. Safe-haven demand and bullish charts are fueling the gold market’s ascent. The same goes for silver but to a lesser degree. December gold was last up $1.70 at $2,647.90 and December silver was down $0.415 at $31.09.

In overnight/weekend news, Israel continued its stepped-up military action in Lebanon, while Hezbollah ramped up its missile attacks on Israel. This situation is bound to intensify before it ever de-escalates. The matter has helped push gold prices to record highs recently.

China Monday slightly lowered one of its key interest rates, the 14-day reverse repo, by 10 basis points. This continues a move by Chinese monetary authorities to ease money policy to stimulate the listing China economy.

The Eurozone got some downbeat economic data Monday, which prompted the DowJones Newswires headline: “Eurozone faces contraction as soft-landing doubts mount.”

Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to slightly higher openings when the New York day session begins. The U.S. stock index bulls have had a very good past couple weeks and are almost through the month of September, which history has shown can be a turbulent month for the stock and financial markets. Reads a Barrons headline today: “Fed uncertainty is history; now markets need to brace for election volatility.”

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are a bit 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 3.75%.

U.S. economic data due for release Monday includes the Chicago Fed national activity index, and the U.S. flash services and manufacturing PMIs.

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 overnight contract high of $2,656.10 and then at $2,675.00. First support is seen at today’s low of $2,638.60 and then at $2,625.00.

December silver futures bulls have the 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 July high of $32.46. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at last week’s high of $31.755 and then at $32.00. Next support is seen at the overnight low of $30.67 and then at $30.00.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@ gmail.com