Gold prices showed an upward trend in midday U.S. trading on Wednesday, achieving a record high of $2,694.90 for December Comex futures. As of the latest update, December gold was up $2.80, trading at $2,679.70, while December silver experienced a slight decline, down $0.28 at $32.15. The pullback in silver prices follows recent gains, yet safe-haven demand continues to support both precious metals, with technical charts indicating a bullish outlook.
The ongoing conflict between Israel and Hezbollah has intensified, with Israel launching its most significant air strikes in Lebanon since 2006. In retaliation, Hezbollah has fired missiles into Israel, though most have been intercepted by Israeli defenses. This escalating situation is fueling safe-haven interest in gold and silver, suggesting potential further price increases in the near future.
In Asia, stock markets rallied following the People’s Bank of China’s recent monetary policy easing, which included a reduction in the one-year medium-term lending facility interest rate from 2.3% to 2.0%. This move, coupled with the central bank’s injection of 300 billion yuan (approximately $43 billion) into financial institutions, is expected to bolster demand in the raw commodity sector, benefiting metals markets.
Meanwhile, Sweden’s central bank, the Riksbank, lowered its key policy rate by 0.25% to 3.25%, with additional cuts anticipated later this year.
In the broader market context, the U.S. dollar index rose, while Nymex crude oil prices fell to around $69.50 per barrel. The yield on the benchmark 10-year U.S. Treasury note declined to 3.77%.
From a technical perspective, December gold bulls maintain a strong advantage, aiming to close above solid resistance at $2,800. The next key support level for bears is at $2,572.50. Initial resistance is identified at the recent contract high of $2,694.96 and then at $2,700, with support levels at $2,650 and this week’s low of $2,638.60.
In silver, bulls are also in a favorable position, with the market in a six-week uptrend. Silver bulls are targeting a close above the May high of $33.50, while bears seek to push prices below solid support at $30. Initial resistance is at the overnight high of $32.61 and $33.00, while support is seen at $32.00 and $31.50. Wyckoff’s Market Ratings stand at 9.5 for gold and 7.5 for silver, reflecting the overall bullish sentiment in both markets.
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