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Price gains for gold, silver as USDX and Treasury yields lower

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(Kitco News) - Gold and silver prices are moderately higher in early U.S. trading Wednesday. The precious metals are lifted at mid-week by a decline in the U.S. dollar index and also in U.S. Treasury yields. Charts are also near-term bullish for the two metals, which is inviting the shorter-term speculators to the long sides of the markets. December gold was last up $6.90 at $1,784.10 and December silver was up $0.387 at $21.90.

Global stock markets were mixed overnight. U.S. stock indexes are headed for slightly lower openings when the New York day session begins. After a tense Tuesday afternoon in the markets following reports that a Russian missile landed in NATO-member Poland and killed two people, the marketplace has mostly settled down after the U.S. said the missile was not likely fired by Russia but instead was likely fired by Ukraine in an attempt to shoot down a barrage of incoming Russian missiles.

Traders and investors remain cheered by Tuesday’s U.S. producer price index report that came in cooler than expected and drove the major U.S. stock indexes to new for-the-move highs. Loosening of Covid restrictions in China and moves by the Chinese central bank to stimulate the world’s second-largest economy are also keeping an upbeat tone in the marketplace at mid-week. Gold and silver bulls are also looking at the aforementioned elements as being positive for better consumer and commercial demand for metals.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are a near steady and trading around $86.85 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently 3.77%.

It’s a busy day for U.S. economic data Wednesday, including the weekly MBA mortgage applications survey, retail sales, import and export prices, industrial production and capacity utilization, the NAHB housing market index, manufacturing and trade inventories, Treasury international capital data and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the slight overall near-term technical advantage. 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 last week’s low of $1,667.10. First resistance is seen at this week’s high of $1,791.80 and then at $1,800.00. First support is seen at the overnight low of $1,773.40 and then at this week’s low of $1,755.80. Wyckoff's Market Rating: 5.5.

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the firm overall near-term technical advantage. A choppy, 2.5-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at this week’s high of $22.38 and then at $22.80. Next support is seen at this week’s low of $21.37 and then at $21.00. Wyckoff's Market Rating: 6.5.
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.