(Kitco News) – Gold prices are again sharply higher and hit a record high of $2,064.90, basis October Comex futures, in early U.S. trading Thursday. Silver prices are also sharply higher and hit a more-than-seven-year high of $28.54, basis September Comex futures. October gold futures were last up $25.00 an ounce at $2,062.10. September Comex silver prices were last up $1.45 at $28.34 an ounce.
Importantly, while there are no early chart clues to suggest the gold and silver markets are close to major tops, both are now getting short-term overbought, technically, and are due for downside corrections in the uptrends. And remember that with the higher volatility and bigger daily price gains seen at present, there will also be bigger downside corrections when they come.
Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. U.S. equities traders remain upbeat due in part to notions the U.S. Congress will soon come through with a new stimulus package for Americans dealing with the economic hardship of the Covid-19 pandemic.
Traders today closely examined the weekly U.S. jobless claims report, which came in at 1.1 million new claims, which is less than the 1.4 million expected. Today’s report is considered somewhat upbeat, amid notions the U.S. economic recovery is slowing down.
The Bank of England left is monetary policy unchanged at is regular meeting today, with the BOE saying negative interest rates may not be the right tool for spurring economic growth in the U.K. economy.
The U.S.-China political tensions remain near a boil, as U.S. Secretary of State Pompeo has urged Americans not to use technology products owned by China, including Alibaba, Huawei, Tencent and Baidu.
The key U.S. data point of the week will be Friday’s jobs report for July from the Labor Department. The non-farm payrolls number is forecast to be up by around 1.25 million after rising by 4.8 million in June. However, don’t be surprised to see a miss from the forecasts, to likely move the markets.
The important outside markets today see Nymex crude oil prices weaker and trading around $42.00 a barrel. The U.S. dollar index is slightly lower today and hit a two-year low overnight. The yield on the benchmark 10-year U.S. Treasury note is presently around 0.526% and near a record low.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report and monthly retail chain store sales.
Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $2,200.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at the overnight high of $2,064.90 and then at $2,100.00. First support is seen at the overnight low of $2,037.20 and then at Wednesday’s low of $2,015.50. Wyckoff’s Market Rating: 10.0
September silver futures bulls have the strong overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $30.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $25.00. First resistance is seen at the overnight high of $28.54 and then at $29.00. Next support is seen at $28.00 and then at $27.00. Wyckoff’s Market Rating: 10.0.
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