Gold and silver prices rise as the week closes
Gold prices rose moderately Thursday in the US. August gold futures are set to close $3.80 up, at a five-month high an ounce, of $1.427.00. Silver markets are also doing well this week as prices hit a four-month high. Silver COMEX prices for September rose $0.194 to $16.17 an ounce.
Silver prices rose nearly $1.00 this week on the charts. Look for further rally in the metal in the near term as price rises this week are of general interest to investors. The weekly chart of COMEX silver futures from shows that prices this week have risen above the long-term downtrend line drawn from the highest level in 2016.
Breaking the $16.20 barrier, near silver futures, would provide bulls with more technical fuel to push prices to the far north, including the potentially quick challenge of the psychological barrier at $17.00. Most importantly, once the $16.20 level is cleared on the upper side, the next long-term resistance levels for silver are low and far apart, indicating that a large upside potential will be very possible. Keep in mind that less than 10 years ago, silver kept its price levels above $25.00 an ounce.
There are also expectations that the United States and China will reach a trade agreement soon, following the latest pessimistic rhetoric from both sides. The newly released reports said China was asking the United States to ease restrictions on Huawei, a technology giant. This position has put a bit of a disincentive to bulls in the global stock markets, and little support for the safe haven gold and silver.
Nymex crude oil prices are trading down strongly, at the lowest level in four weeks, around $57.00 a barrel. Meanwhile, the USD index remains almost constant.
Technically, bulls have a near-term technical advantage. There has been a seven-week uptrend on the daily chart. The next target for bulls is to produce a close in August futures that would break the resistace level at June’s $1,442.90 high. For the bears, the next target is pushing August futures prices down below the strong technical support at a July low of $1,384.70. The inintial resistance is seen at today’s high of $1.431.90 and then $1442.90. The first support appears at $1.410.00 and then at $1.400.00.
September futures bulls have a near-term technical advantage and mometum. Silver bulls’ next upside target is to close prices above the strong technical resistance at the highest level of the year, $16.47 an ounce. The next downside price target is to close the pair below the strong support level at this week’s low of $15.185. The first resistance appears at today’s high of $16.25 and then at $16.47. The first support appears at the overnight low of $15.96, and then $15.75.