Safe-haven buying, bullish charts fuel price gains for gold, silver

(Kitco News, Tuesday. Oct. 22nd. 2024) – Gold and silver futures prices are up in early U.S. trading Monday, with gold near Monday’s record high of $2,755.40, basis December Comex futures, while silver futures overnight hit another 12-year high. Safe-haven demand and bullish technical charts continue invite traders and investors to the long sides of those markets. December gold was last up $10.60 at $2,749.50 and December silver was up $0.577 at $34.655.

One focal point for traders and investors this week is the BRICS meeting (Brazil, Russia, India, China, South Africa). The Associated Press today said the meeting of the BRICS bloc of developing economies “aims to counterbalance the Western-led world order. And its bloc of members is expanding rapidly. Iran, Egypt, Ethiopia, the United Arab Emirates and Saudi Arabia joined in January; Turkey, Azerbaijan and Malaysia formally applied, and a number of others expressed a desire to be members.” A main goal of the group is to move away from U.S.-dollar-dominating global commerce, so called “de-dollarization.” This concept is bullish for the safe-haven gold and silver markets.

Asian and European stock indexes were mixed to weaker overnight. U.S. stock indexes are pointed to lower openings when the New York day session begins.

The key outside markets today see the U.S. dollar index slightly lower. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.214% and has been on the rise lately. Crude oil prices are higher and trading around $71.50 a barrel.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report and the Richmond Fed business survey. The International Monetary Fund and World Bank meetings are taking place this week, with major global central bank and financial officials due to speak.

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 this week’s contract high of $2,755.40 and then at $2,775.00. First support is seen at this week’s low of $2,728.50 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 $34.00 and then at this week’s low of $33.66.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com