(Kitco News) – Gold prices are up slightly and silver prices significantly higher at noon in the US on Monday, supported by a US dollar index that fell to a low of 2, 5 years today and by at least some notions the rising US stock market is now becoming sparkling. October gold futures were last up $ 5.00 to $ 1,971.80. The Comex silver price in December was last up $ 0.725 to $ 28.515 an ounce.
Global stock markets were mostly higher overnight. US stock indexes are mixed at noon, with the Nasdaq and S&P once again hitting record highs. Traders and investors remain bullish as fall approaches. However, as the calendar moves to September, history shows that September and October can be pretty nasty for stock bulls. The pandemic is still seriously affecting parts of the United States and the world, but hopes are high that a credible vaccine will arrive as soon as possible. Additionally, most believe that major governments will not see their economies almost completely locked down again, even if a second wave of the virus hits later this fall.
In the overnight news, the official measure of Chinese factory activity rose at a slower pace in August than expected. The official purchasing managers index in China’s manufacturing sector fell to 51.0 in August from 51.1 in July. The reading was below the average forecast of 51.2. However, the August reading was the sixth consecutive month the index was above the 50 mark which suggests an expansion.
Other major foreign markets are now seeing Nymex crude oil prices rise and trade around $ 43.00 per barrel. The yield on the 10-year US Treasury note is trading around 0.7% today.Technically, October gold futures bulls have the overall short-term technical advantage. Prices are still in a five month uptrend on the daily bar chart. The next bullish price target is to produce an October futures close above the strong resistance at $ 2,000.00. Bears’ next short-term price drop target is to push futures prices under strong technical support to the August low of $ 1,865.00. First resistance is seen at last week’s high of $ 1,978.50 and then $ 2,000.00. First support is seen at today’s low of $ 1,955.00, followed by last Friday’s low of $ 1,921.20. Wyckoff Market Rating: 7.5
The December silver futures bulls have a strong overall short-term technical advantage amid a five-month-old price uptrend in place on the daily bar chart. The next bullish price target for Silver Bulls is to close prices above strong technical resistance at the August high of $ 30.19 an ounce. The next lower price target for the bears is to close the price below strong support at $ 25.00. The first resistance is seen at $ 28.775 and then at $ 29.00. Next support is seen at today’s low of $ 27.79 and then $ 27.50. Wyckoff Market Rating: 8.0.
December NY copper closed 440 points higher at 306.35 cents today. Prices closed near the high of today’s session and hit a 28 month high. The copper bulls have the strong overall technical advantage in the short term. The next bullish price target for copper bulls is to push and close price above strong technical resistance at 320.00 cents. The next lower price target for the bears is to close the price below strong technical support at 290.00 cents. First resistance is seen at 307.50 cents, then 310.00 cents. First support is seen at today’s low of 302.80 cents and then 300.00 cents. Wyckoff Market Rating: 8.5.
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