Make Kitco Your Homepage

Solid price gains for gold, silver ahead of U.S. inflation data

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Gold and silver prices are posting good gains in early U.S. trading Tuesday, supported by some chart-based buying, short covering in the futures market, and by a weaker U.S. dollar index on this day. December gold futures were last up $17.90 at $1,777.00. December Comex silver was last up $0.436 at $22.95 an ounce.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to slightly higher openings when the New York day session begins.

The focus of the marketplace at mid-week is on the U.S. consumer price index report for September, which is expected up 0.3% from August and up 5.3%, year-on-year. Rising energy costs and supply-chain bottlenecks in recent weeks have traders and investors even more keenly focused on inflation prospects in the months ahead. The Federal Reserve will closely scrutinize today’s CPI data as it mulls the timing of tapering its monthly government bond purchases (quantitative easing).

In overnight news, China reported its exports in September were up 28.1%, year-on-year, while imports were up 17.6%. The exports number was a bit higher than expected and the imports number a bit lower than expected.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures are weaker and trading around $80.00 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.565%.    

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the FOMC minutes and the monthly Treasury budget statement.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures bulls and bears are now back on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,721.10. First resistance is seen at the October high of $1,782.40 and then at $1,788.40. First support is seen at the overnight low of $1,759.80 and then at this week’s low of $1,749.90. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the September low of $21.41. First resistance is seen at $23.00 and then at the October high of $23.22. Next support is seen at the overnight low of $22.48 and then at this week’s low of $22.325. Wyckoff's Market Rating: 2.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.