Price gains for gold, silver; inflation train leaving the station
(Kitco News) - Gold and silver prices are higher and near this week’s multi-month highs in early U.S. trading Thursday. Traders and investors are scrambling to get on board with hard assets like the precious metals, on rising fears of problematic price inflation. December gold was last up $12.90 at $1,861.30 and December Comex silver was last up $0.223 at $24.99 an ounce.
Global stock markets were flat to a bit higher in overnight trading. The U.S. stock indexes are pointed to firmer openings when the New York day session begins. The focus of the marketplace is now on the increasing odds of higher and even problematic price inflation worldwide. Two U.S. inflation reports this week ran hot and underscored inflation is tightening its grip on world economies. The U.S. consumer price index report released Wednesday showed inflation running at a 30-plus year high. Gold prices hit a five-month high and silver scored a three-month high on Wednesday, as traders and investors seek out inflation hedges in hard assets. There are now growing notions the Federal Reserve will be forced to raise U.S. interest rates much sooner that the central bank has recently suggested.
Today is a U.S. federal holiday, Veterans Day, and the U.S. government and Treasury markets are closed. There is no U.S. economic data due for release Thursday, due to the holiday.
In overnight news, the Euro zone forecast its economic growth in 2021 at 5.0%, at up 4.3% in 2022 and at 2.4% growth in 2023. The Euro zone forecast its inflation in 2021 at up 2.4%, up 2.2% in 2022 and up 1.4% in 2023. Those inflation forecasts seem low when compared to inflation numbers that have been released recently.
The key outside markets today see the U.S. dollar index higher and hitting a 15-month high overnight. Nymex crude oil prices are lower and trading around $80.50 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.57%.
Technically, December gold futures bulls have the firm overall near-term technical advantage and have momentum. A five-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at this week’s high of $1,870.60 and then at $1,875.00. First support is seen at $1,850.00 and then at the overnight low of $1.845.10. Wyckoff's Market Rating: 7.0.December futures prices above solid technical resistance at $26.13 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at this week’s high of $25.22 and then at $25.50. Next support is seen at the overnight low of $24.645 and then at $24.50. Wyckoff's Market Rating: 6.0.