Gold Soars Past $2600, Sets New Record: Fundamentals and Technicals Drive Up

Gold and silver prices rose in the early U.S. session, with gold hitting a new all-time high and silver reaching a three-week high.

The most active December COMEX gold futures contract touched $2,601.00 overnight.

Currently, the market is unanimously bullish on gold due to strong fundamental and technical factors supporting their camp.

Silver is now catching up with gold's updraft.

December gold rose $16.10 to $2,596.80, and December silver rose $0.298 to $30.405.

The loose monetary policies of major central banks and the recent depreciation of the U.S. dollar in the foreign exchange market are driving up precious metal prices.

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The recent decline in bond yields has also boosted the gold and silver markets.

Asian and European stocks were mixed overnight.

U.S. stock indices opened strong at the start of the New York session.

U.S. stock index bulls have had a very good week, recovering most of the losses from September.

In the foreign exchange market, Trade Nation's David Morrison said in an email today: "The yen continues to strengthen.

Overnight, the U.S. dollar fell to its lowest level against the yen since late December.

This is down more than 13% from the multi-decade high set on July 4th, U.S.

Independence Day.

This is quite a significant shift for the currency pair and it powerfully represents the unwinding of yen carry trades.

It is also fully consistent with the current outlook, which forecasts interest rate cuts by the Federal Reserve and further interest rate hikes by the Bank of Japan."

The main external market sees the U.S. dollar index falling.

Crude oil prices on the New York Mercantile Exchange are higher, trading at around $69.75 per barrel.

The benchmark 10-year U.S. Treasury yield is falling, currently at 3.648%.

U.S. economic data released includes import and export prices and the University of Michigan consumer sentiment survey.

Technically, December gold bulls have a strong overall short-term technical advantage.

The next upside price target for the bulls is to close above the solid resistance level at $2,700.00.

The next near-term downside price target for the bears is to push futures prices below the solid technical support level at $2,500.00.

First resistance is seen at the overnight historical high of $2,601.00, followed by $2,625.00.

The first support is at the overnight low of $2,585.00, followed by $2,570.40.

Our market rating: 9.5.

December silver futures bulls have gained an overall short-term technical advantage.

The next upside price target for silver bulls is to close above the solid technical resistance level at $31.00.

The next downside price target for the bears is to close below the solid support level at $28.00.

First resistance is at the August high of $30.67, then at $31.00.

The next support is expected at $30.00, then at $29.55.

Our market rating: 6.0.