For the third time in less than 24 hours, gold and silver are surging. Here’s an update…
Gold has broke through all the way to $1330:
Silver has broke $17.66:
In the Monday Outlook, we noted that Gold would have to bust out from $1300 because it looked like it would have trouble at $1310 to $1315. If prices can hold overnight, we will have taken out that very important level:
In silver, we were merely trying to get a close above the 200-day moving average, and we said the next stop would be at $17.50. If prices hold tonight, we will have made an important step in breaking this resistance as well. While gold is on a fresh new high for 2017 right now, silver has a bunch of room to run.
Here is what we covered earlier:
Earlier today we reported on the strength in the precious metals overnight.
Well the strength has seen another surge here late morning with gold solidly taking out $1300 with a high of $1313.30:
Silver is also powering its way through resistance points with a high on the day so far above $17.41:
Even copper is trying to break through $3.10!
Here is what we said this morning at 7:00 a.m.:
Gold and silver are going on the offensive today as overnight trading has shown just how strong the precious metals are:
Gold traded over $1304 last night and looks strong coming into the start of Monday’s trading.
Silver got over $17.20 in the overnight trading action.
There are no major data releases until 8:30 a.m today (international trade data), and other than the Dallas Fed Mfg Survey, there is Treasury issuance. There are no Fed speakers, and there is one (devastating) piece of news on the television right now, the plight, struggle and losses of all those affected by Hurricane Harvey.
While crude is yet to reflect any effect the hurricane will have on crude production or refining, gasoline futures were up 7% last night, due the the Hurricane as CNBC reports:
Prices were up as much as 7 percent on Sunday night, and were trading around 4 percent higher in early trading Monday.
Flooding and other damage from the storm are expected to cut at least 1 million barrels per day from refining capacity. Shell, Exxon, and several other refineries in the area announced plans to shut down on Sunday. Major roadways and waterways are also closed, making it impossible to ship refined gasoline out of the area.
Right now the immediacy of gasoline is more important than the extraction of oil and the refining of it. This is from a purely economical point-of-view. Obviously life and property are more important than whether the price of gasoline has gone up in relation ot crude.
Compounding devastation and economic impact is that further rain is expected as the as Reuters is reporting that the Harvey, which had turned into a tropical storm after being classified as a Cat 4 hurricane.