Gold, silver rally on inflation worries

Friendly charts Gold and silver prices are solidly higher near midday Wednesday. Concerns about rising inflation are prompting buying interest in the hard asset metals. Also, the technical postures for both precious metals have turned more bullish 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 higher at midday. 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 other news Bitcoin prices pushed well above $64,000 and hit a record high Wednesday, 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. Respected commodity trader Paul Tudor Jones said on CNBC today that inflationary pressures are not just transitory, adding that he believes the long side of commodity markets will be in keener favor in the coming months. Indeed, this situation is very likely to draw significantly more speculators to the long side of raw commodity futures markets, including the metals.

The key outside markets today see the U.S. dollar index weaker. Crude oil prices are higher and trading around $83.50 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.65%.

Technically, December gold futures bulls have the overall near-term technical advantage amid a three-week-old price uptrend in place on the daily bar 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 today’s high of $1,789.60 and then at $1,800.00. First support is seen at $1,775.00 and then at this week’s low of $1,760.30. Wyckoff's Market Rating: 6.0

December silver futures prices hit a five-week high today. The silver bulls have the overall near-term technical advantage. Prices are in a three-week-old uptrend on the daily chart. Silver bulls' next upside price objective is closing 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 $24.50 and then at $24.75. Next support is seen at $24.00 and then at today’s low of $23.615. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed down 15 points at 470.15 cents today. Prices closed nearer the session high today. The copper bulls have the solid overall near-term technical advantage. Prices are in a steep four-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the May high of 487.05 cents. The next downside price objective for the bears is closing prices below solid technical support at 440.00 cents. First resistance is seen at this week’s high of 482.30 cents and then at 487.05 cents. First support is seen at today’s low of 459.35 cents and then at 455.00 cents. Wyckoff's Market Rating: 7.5.

By Jim Wyckoff

For Kitco Newsupside price objective is pushing and closing prices above solid technical resistance at the May high of 487.05 cents. The next downside price objective for the bears is closing prices below solid technical support at 440.00 cents. First resistance is seen at this week's high of 482.30 cents and then at 487.05 cents. First support is seen at today's low of 466.85 cents and then at 460.00 cents. Wyckoff's Market Rating: 8.0.
 

By Jim Wyckoff

For Kitco News

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