(Kitko News) – Gold and silver prices rose marginally in early Monday trading. The metals are gaining despite a better risk appetite in the market to start the trading week. Crucially, recent sideways and gold price movements have produced a fast-growing pattern on the daily bar chart, suggesting that energy will be available for a larger price coming soon in the market. Storage is being done (possibly this week), and the odds favor that the price is going upside down. October gold futures rose $ 3.70 to $ 1,943.20 and December Comex silver rose $ 0.163 to $ 27.02 an ounce.
Global stock markets were mostly overnight. The US stock indexes are set for a solidly higher opening when the New York Day session begins. Traders and investors sense of risk is excited to start trading week. Two big company deals were announced over the weekend: SoftBank plans to sell Nvidia to chipmaker ARM for more than $ 40 billion, and Gilead Sciences plans to acquire Immunomedics for $ 21 billion. Meanwhile, AstraZeneca said it has resumed its phase-three trial on the Kovid-19 vaccine after being suspended last week. Pfizer also announced that the vaccine could be delivered before the end of the year if all goes well with its tests.
Major central bank meetings are in the news this week. The Federal Reserve, Bank of England and Bank of Japan all have monetary policy meetings this week. The Fed’s FOMC meeting will be closely scrutinized after it shifts its inflation districts to ease. The question remains as to how the FOMC implements its new policy.
In an email remittance, an FXTM analyst said on Monday: “From what we now know, the Fed is set to keep interest rates near zero for many years. Given the new framework, any increase in inflation will not immediately increase rates as the Fed seeks to compensate for lost years when they have failed to hit targets. The dot plot will be an important guide for investors and traders alike. If the inflation estimate remains at 2% or less for the foreseeable future, it will strengthen market expectations for a lower rate environment for many years to come. That said, J. Powell still has to explain in more detail how the new framework will be translated into policy action. ”
Today, significant outside markets see the US dollar index down. Nymex crude oil prices are weak and are trading around $ 37.00. The yield on the US Treasury 10-year note is trading around 0.67% today.
There is no major US economic data due to be released Monday, but the pace of the report is picking up speed on Tuesday.
Technically, gold bulls have firm to overall technological advantage, with recently choppy and side trading people producing a fast growing pattern. Prices are still in an overall near-uptrend on the daily bar chart. The Bulls’ next upside price objective is to produce close to solid resistance at the September high of $ 1,992.50 in October futures. Beers’ next near-term downside price objective at $ 1,900.00 is pushing down futures prices with solid technical support. First resistance is seen at last week’s high of $ 1,966.60 and then $ 1,972.40. The first support is seen on Friday at a low of $ 1,936.20 and then at $ 1,925.00. Weakoff’s market rating: 7.0
December silver futures bulls hold firm to overall technical gains. Prices are still in an overall price increase on the daily bar chart. Silver Bulls’ next upside price objective is above solid technical resistance at an August high of $ 30.19 an ounce. The next downside for bears is aimed below the solid support price at a low of $ 23.80. First resistance is seen at $ 27.50 and then at last week’s high of $ 27.755. The next support is seen at $ 26.565 and again at a low of $ 25.985 last week. Weakoff’s market rating: 7.0.
Disclaimer: The views expressed in this article are those of the author and may not reflect any of them. Kitco Metals Inc The author has made every effort to ensure the accuracy of the information provided; However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an insistence on any exchange in goods, securities or other financial instruments. Kitco Metals Inc. and the authors of this article plead not guilty to damages and / or damages resulting from the use of this publication.