The GraveYard Shift

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AM-Roundup-Gold price pausing amid upbeat marketplace attitudes


Jim Wyckoff
Monday August 31, 2020 08:25

(Kitco News) - Gold prices are near steady in early U.S. trading Monday, while silver is posting decent gains. At present there is less risk aversion in the global marketplace, which is somewhat constraining the safe-haven metals bulls. October gold futures were last steady at $1,966.80. December Comex silver prices were last up $0.385 at $28.18 an ounce.

Global stock markets were mostly higher overnight. The U.S. stock indexes are also pointed toward higher openings when the New York day session begins. U.S. stock indexes have had a very good month of August, with the Nasdaq and S&P again hitting record highs overnight. Traders and investors remain in upbeat moods heading into the fall. The pandemic is still seriously gripping parts of the U.S. and the world but hopes are high that a credible vaccine will arrive sooner rather than later. Also, most reckon that major governments will not put their economies on nearly complete lockdown again even if a second wave of the virus hits later this fall.

In overnight news, the official gauge of China's factory activity rose at a slower pace in August that expected. China's official manufacturing purchasing managers' index fell to 51.0 in August from 51.1 in July. The reading was lower than the average forecast of 51.2. However, the August reading was the sixth consecutive month that the index was above the 50 mark that suggests expansion.

The important outside markets today see Nymex crude oil prices higher and trading around $43.50 a barrel. The U.S. dollar index lower and near its recent two-year low. The yield on the U.S. Treasury 10-year note is trading around 0.74% today.

U.S. economic data due for release Monday is light and includes the Texas manufacturing outlook survey.



Technically, the gold bulls still have the firm overall near-term technical advantage, amid recent choppy trading. Prices are still in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at last week’s high of $1,978.50 and then at $2,000.00. First support is seen at the overnight low of $1,955.00 and then at $1,921.20. Wyckoff's Market Rating: 7.5



December silver futures bulls have the solid overall near-term technical advantage. A bullish symmetrical triangle pattern has formed on the daily bar chart. Prices are still in an overall price uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the August high of $30.19 an ounce. The next downside price objective for the bears is closing prices below solid support at the August low of $23.80. First resistance is seen at the overnight high of $28.465 and then at $28.775. Next support is seen at the overnight low of $27.79 and then at $27.50. Wyckoff's Market Rating: 7.5.
By Jim Wyckoff

For Kitco News
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