Gold price powers to 2-mo. high on inflation concerns – Kitco NEWS

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(Kitco News) – Gold and silver prices are modestly up in early U.S. trading Monday, with gold notching a two-month high. It appears the metals traders have turned their focus from the bearish aspects of a tighter U.S. monetary policy, to the bullish prospects of rising and even problematic price inflation in the coming months. December gold was last up $2.60 at $1,819.40 and December Comex silver was last up $0.173 at $24.33 an ounce.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to mixed openings when the New York day session begins. The U.S. indexes hit record highs last Friday. There remains little risk aversion in the global marketplace at present. The U.S. House of Representatives late Friday approved a pared-down U.S. government spending plan.

In other weekend news, China reported its October imports were up 20.6%, year-on-year, which was less than expected. However, China’s exports in the period were higher than expected, at up 27.1%.

China’s Communist Party has begun a four-day meeting at which President Xi Jinping is expected to make a move to extend his rule indefinitely. Xi wants to extend his ambitious plans for the domestic economy and its global economic and geopolitical power.

The key outside markets today see the U.S. dollar index weaker after hitting a new high for the year last Friday. Nymex crude oil prices are higher and trading around $82.15 a barrel. The oil market bulls have become wobbly. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.481%.  

U.S. economic data due for release Monday is light and includes the employment trends index.

Live 24 hours gold chart [Kitco Inc.]

Technically, December gold futures bulls have the overall near-term technical advantage and have momentum. They have restarted a five-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the September high of $1,836.90. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,758.50. First resistance is seen at the overnight high of $1,823.00 and then at $1,830.00. First support is seen at the overnight low of $1.813.80 and then at $1,800.00. Wyckoff’s Market Rating: 6.5.

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls and bears are back on a level overall near-term technical playing field. 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 $24.50 and then at $24.75. Next support is seen at the overnight low of $24.13 and then at $24.00. Wyckoff’s Market Rating: 5.0.

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.

source: Gold price powers to 2-mo. high on inflation concerns – Kitco NEWS

Tags: #Gold #gold prices #Inflation #Interest Rates #silver prices #US dollar

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