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