Gold, silver prices power to multi-year highs, more upside likely

Gold and silver prices are sharply higher in early U.S. trading Tuesday. Gold prices pushed to a new nearly nine-year high, while silver is strongly up again today and hit a four-year high. There continues to be a steady (and now and increasing) flow of safe-haven and technically related buying in the two precious metals, which is likely to push prices still higher in the near term. August gold futures were last up $22.40 an ounce at $1,839.40. September Comex silver prices were last up $1.153 at $21.35 an ounce.

Global stock markets were mostly firmer in overnight trading. The U.S. stock indexes are pointed toward higher openings when the New York day session begins. U.S. equities are leading the global bourses higher amid better-than-expected U.S. corporate earnings reports. The Nasdaq index closed at a record high close on Monday. Traders and investors are weighing the rising Covid-19 infections in many countries, including the U.S., but also the positive news that three companies are reporting very good progress on developing a vaccine that could come to consumers for use by the end of this year and maybe as soon as September.

Global stock markets were mostly firmer in overnight trading. The U.S. stock indexes are pointed toward higher openings when the New York day session begins. U.S. equities are leading the global bourses higher amid better-than-expected U.S. corporate earnings reports. The Nasdaq index closed at a record high close on Monday. Traders and investors are weighing the rising Covid-19 infections in many countries, including the U.S., but also the positive news that three companies are reporting very good progress on developing a vaccine that could come to consumers for use by the end of this year and maybe as soon as September.

European Union officials finally agreed upon a contentious $2 trillion economic rescue spending plan that centers on the bloc issuing common bonds for the first time ever. Ironically, the common bond issuance could make the EU more cohesive in coming years, after recent turbulent years that saw the U.K. leave the union.

The important outside markets today see Nymex crude oil prices higher, at a 4.5-month high and trading around $42.00 a barrel. The U.S. dollar index is slightly weaker in early trading. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.61% level.

U.S. economic data due for release Tuesday is light and includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, and the Chicago Fed national activity index.

Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,789.00. First resistance is seen at the overnight high of $1,830.00 and then at $1,840.00. First support is seen at the overnight low of $1,817.20 and then at Monday’s low of $1,806.60. Wyckoff’s Market Rating: 9.0.

September silver futures bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $22.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at this week’s low of $19.655. First resistance is seen at $21.00 and then at $21.25. Next support is seen at $20.50 and then at the overnight low of $20.315. Wyckoff’s Market Rating: 9.0.