(Kitco News) – Gold and silver prices are sharply higher at midday Wednesday, with gold hitting a six-year high and trading well above the key $ 1500.00 level. Silver prices reached a 13-month high of $ 17,145, the base Comex futures in December. Businesses and investors around the world are at the forefront in the middle of the week as the global yield on government bonds took a dramatic dive today. Demand for safe harbor continues to increase the two precious metals. Gold futures last December were up $ 32.60 per gram at 1
Yield on Reference U.S. Treasury Note fell to 1.61% today, while government bonds in Europe also saw their yields slipping sharply, especially the German bond loan (port), whose yields were at record lows today. Some veteran market watchers compared today's large decline in bond yields with the bond price action seen during the 2008 financial crisis.
The US stock market sold to expand the recent sharp falls, while crude prices fell today.
The US-China trade war is blamed for the recent market turbulence. It seems that the consequences of the trade war, combined with the already anemic growth in many of the world's major economies, have led to a "run-down" to world interest rates on government bonds. Bond traders expect central banks to continue easing their monetary policy by lowering interest rates even further, including central banks that have already pushed interest rates into negative territory. Central banks in New Zealand, India and Thailand lowered interest rates on Wednesday. Bet now is that the Federal Reserve will soon lower interest rates again.
China's central bank on Wednesday set the currency, the yuan, the US dollar exchange rate to 6.9996. It is the lowest deposit that the central bank has set in 11 years, but still just below the 7 level that the US seems to have considered problematic. This exchange rate will continue to be closely monitored by the world market, since China is already accused of using its currency as a weapon of trade. The US designated China as a currency manipulator earlier this week.
Technically, gold futures prices for December have closed closer to the session high today. The bulls have the strong general technical advantage in the near term. A nine-week-old trend is in place in the daily bar chart. There are still no clues to suggest that a market stop is nearby. The Gold Bulls' next upside near-term awarding goal is to produce a near over solid technical resistance at $ 1,550.00. Bears & # 39; s next long-term downside award is to push prices under solid tech support to $ 1,467.00. First resistance is seen at today's high of $ 1,522.70 and then at $ 1,525.00. First aid can be viewed at $ 1,500.00 and then at today's lowest price of $ 1,484.30. Wyckoff's Market Estimate: 9.5
Silver futures prices in September closed near the season's high day. Silver ox has the solid technical advantage in the near term and gained more power today. A 10 week old trend is in place in the daily bar chart. Silver Bull's next price target for price developments is closing prices above solid technical resistance of $ 17.50 per ounce. The next price trend for the Bears is to close the prices under solid support of $ 16.50. First resistance is seen at today's high of $ 17,145 and then at $ 17.25. Next support is seen at $ 16.75 and then at $ 16,685. Wyckoff's market valuation: 8.5.
September N. Y. Copper closed 165 points at 257.45 cents today. Prices closed closer to the session high on more card coverage after reaching a 2.5-year low on Monday. Copper bears have the solid technical advantage in the short term. The copper's next upside target is to push and close prices over solid technical resistance of 268.00 øre. The next target for the prices of the bears is to close the prices under solid technical support to 250,00 øre. First resistance is seen at this week's high of 257.80 cents and then at 260.00 cents. First aid can be seen at the lowest 253.15 cents for this week and then at 252.00 cents. Wyckoff's Market Review: 1.0.
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