Gold prices are trading higher and hit an all-time record high overnight at $2,487.40, basis August Comex futures. The yellow metal bulls are strong and looking for more price appreciation in the near term. Bullish technical factors and growing marketplace notions the Federal Reserve will cut U.S. interest rates this fall are driving gold’s price north. Meantime, silver prices are languishing at present. Still, if gold continues to rally silver will likely tag along. August gold was last up $11.30 at $2,479.10. September silver was down $0.208 at $31.25.
A Barron’s headline today reads: “Gold, bonds can thrive while Nvidia, mag seven falter in tech exodus.” The story says the “‘Great Rotation,’ as it’s becoming known, won’t be confined to just stocks. Investors have other places to look for more growth.”
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins, on profit taking led by technology stocks. The S&P 500 and the Nasdaq indexes recently hit record highs.
This week marks the start of China’s Central Committee third plenum, a four-day meeting of the Communist Party leadership to discuss long term economic reforms. The plenum occurs once every five years.
In overnight news, the Euro zone June consumer price index came in at up 0.2%, month-on-month, and up 2.5%, year-on-year. Those numbers were right in line with market expectations and show cooler inflation in the Euro zone.
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil prices are slightly up and trading around $81.00 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.175%.
U.S. economic reports out Wednesday include the weekly MBA mortgage applications survey, new residential construction, industrial production and capacity utilization, the weekly DOE liquid energy stocks report, and the Federal Reserve beige book.
Technically, August gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,500.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,400.00. First resistance is seen at the overnight record high of $2,487.40 and then at $2,500.00. First support is seen at today’s low of $2,466.60 and then at $2,450.00. Wyckoff’s Market Rating: 9.0.
September silver futures bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the May high of $33.05. The next downside price objective for the bears is closing prices below solid support at the June low of $28.90. First resistance is seen at the overnight high of $31.655 and then at the July high of $32.015. Next support is seen at the overnight low of $30.96 and then at $30.62. Wyckoff’s Market Rating: 7.0
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to my Front Burner list.)
