Make Kitco Your Homepage

Price gains for gold, silver; inflation train leaving the station

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 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%.  

Live 24 hours gold chart [Kitco Inc.]

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.

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing 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.
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.