Gold and silver see prices rise as Federal Reserve confab looms

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(Kitco News) – Gold and money price are higher in early-morning trading on Monday, as major foreign markets favor precious metal bulls to start the trading week – a weaker US dollar index and significantly higher crude oil prices. Precious metals are also the subject of an offer earlier in the week on growing ideas that the Federal Reserve will not be able to start tightening monetary policy as soon as many estimated a few weeks ago to sadness. October gold futures were up $ 10.00 to $ 1,791.80 and September Comex silver was up $ 0.338 to $ 23.45 an ounce.

Global equity markets were mostly firmer overnight. US stock indices show higher openings when the New York session begins. The focus of the market this week is on the Federal Reserve’s annual symposium held in Jackson Hole, Wyoming. The confab has been reduced a bit and some parts will be virtual this year due to the spread of the delta variant of the coronavirus. Earlier this week, traders and investors are reassessing recent notions that the Federal Reserve will be looking at US monetary policy at the Fed Symposium. The rapidly spreading variant of Covid has many now thinking the Fed will have to wait longer to implement its easy money policies. Dallas Fed Chairman Rob Kaplan said on Friday he was rethinking his call for a process to quickly reduce Fed bond purchases, due to the spread of the virus and its potential impact on the American economy.

It seems there is less risk aversion in the global market to start the trading week. There is still a chaotic situation in now Taliban-controlled Afghanistan, with people, including Americans, still trying to get out of this country. However, it appears the markets are now looking beyond the question. Seasoned market watchers are well aware of what the historically turbulent months of September and October can be like on the horizon for the stock and financial markets.

Major foreign markets are now seeing the US dollar index weaken after hitting a 10.5-month high last Friday. Nymex crude oil futures prices are significantly higher and are trading around $ 64.00 per barrel. Meanwhile, the yield on the benchmark 10-year US Treasury bond is currently at 1.28%.

US economic data due for release Monday includes the Chicago Fed’s national activity index, US flash and services PMIs, and existing home sales.

Technically, bulls in October gold futures have a slight overall technical advantage in the short term and have momentum on their side. The Bulls’ next bullish price target is to produce a close above the solid resistance at $ 1,800.00. Bears’ next short-term bearish price target is to push futures prices below strong technical support at $ 1,700.00. First resistance is seen at last week’s high of $ 1,795.00 and then $ 1,800.00. First support is seen at the overnight low of $ 1,775.90 and then last week’s low of $ 1,769.80. Wyckoff Market Score: 5.5

Silver bears have the overall short-term technical advantage. Prices are still in a three month downtrend on the daily bar chart. The next bullish price target for Silver Bulls is to close September futures prices above strong technical resistance at $ 25.00 an ounce. The next bearish price target for bears is to close prices below solid support at the August low of $ 22.295. The first resistance is seen at $ 23.75 and then at $ 24.00. Next support is seen at $ 23.00, then last week’s low of $ 22.835. Wyckoff market rating: 2.5.