Price advances for gold, silver, amid inflation worries
(Kitco News) - Gold and silver prices higher and near their daily highs in early U.S. trading Wednesday. Worries about rising inflation are prompting buying interest in the hard asset metals. Also, the technical postures for both precious metals have turned more bullish just recently. December gold futures were last up $13.80 at $1,784.20. December Comex silver was last up $0.202 at $24.10 an ounce.
Global stock markets were mostly higher in overnight trading. The U.S. stock indexes are pointed to mixed openings when the New York day session begins. The U.S. stock indexes have made impressive recoveries from their October lows and are now in position to challenge the record highs scored in September. Mostly upbeat corporate earnings reports are presently trumping worries about inflation and slowing global economic growth.
In overnight news Bitcoin prices pushed above $64,000 and are near the record high, after a U.S. exchange traded fund on the crypto-currency debuted on Tuesday.
The Eurozone September consumer price index was reported up 0.5% from August and up 3.4%, year-on-year. Those numbers were right in line with market expectations and not deemed too hot. However, there remain growing notions that inflationary pressures will become stronger in the coming months. There are increasing reports of supply shortages for some critical raw commodities, such as copper, while at the same time shipping bottlenecks are keeping many supplies from reaching their destinations.
The key outside markets today see the U.S. dollar index firmer. Crude oil prices are lower and trading around $82.00 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.65%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly DOE liquid energy stocks report and the Federal Reserve’s beige book.
Technically, December gold futures bulls have the slight overall near-term technical advantage as prices are trending higher on the daily chart. Bulls’ next upside price objective is to produce a close above solid resistance at the October high of $1,801.90. 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 this week’s high of $1,786.00 and then at $1,800.00. First support is seen at the overnight low of $1,767.10 and then at this week’s low of $1,760.30. Wyckoff's Market Rating: 5.5
The silver bulls have the overall near-term technical advantage. Prices are in a three-week-old uptrend. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.50. First resistance is seen at $24.25 and then at $24.50. Next support is seen at the overnight low of $23.615 and then at $23.50. Wyckoff's Market Rating: 6.0.