Gold, silver gain as bulls buy the dips
(Kitco News) - Gold and silver prices arehigher in midday U.S. trading Wednesday. Bulls stepped in to buy Tuesday's dipsin the metals' prices, which is a sign of strong markets. Gold and silver as aninflation hedge remains the major bullish element in the marketplace atpresent. December gold was last up $14.20 at $1,868.20 and December Comexsilver was last up $0.196 at $25.15 an ounce.
Globalstock markets were mixed in overnight trading. The U.S. stock indexes are alsomixed at midday. Focus for U.S. equities traders remains on corporate earnings,which have been upbeat. Also, holiday spending is under way and that hasbusinesses and investors in good moods. Still, markets are pausing due toinflation worries and concerns about rising Covid-19 cases in Asia and Europe.
Inovernight news, the Euro zone October consumer price index was reported up 0.8%from September and up 4.1%, year-on-year. Meantime, The U.K. reported itsconsumer inflation rate at up 4.2% in October, year-on-year, for the biggestrise in a decade. Those numbers are around twice as hot as the European CentralBank and Bank of England say they would like to see. More and more "hot price" economicdata like this only reaffirms inflation and even problematic inflation willlikely be hanging around a while.
Thekey outside markets today see the U.S. dollar index weaker after hittinganother 15-month high overnight. Nymex crude oil prices are solidly lower andtrading around $78.85 a barrel. The 10-year U.S. Treasury note yield ispresently fetching 1.628%.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, December gold futures bulls have thefirm overall near-term technical advantage. Prices are in a six-week-olduptrend on the daily bar chart. Bulls' next upside price objective is toproduce a close above solid resistance at $1,900.00. Bears' next near-termdownside price objective is pushing futures prices below solid technicalsupport at $1,800.00. First resistance is seen at this week's high of $1,879.50and then at $1,885.00. First support is seen at this week's low of $1,851.00and then at $1,839.00. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
December silver futures bullshave the overall near-term technical advantage amid a six-week-old uptrend inplace on the daily bar chart. Silver bulls' next upside price objective isclosing prices above solid technical resistance at $26.13 an ounce. The nextdownside price objective for the bears is closing prices below solid support atthe November low of $23.045. First resistance is seen at this week's high of$25.49 and then at $25.75. Next support is seen at this week's low of $24.825and then at $24.50. Wyckoff's Market Rating: 6.0.
December N.Y. copper closed down 745 points at427.75 cents today. Prices closed nearer the session low today and hit afive-week low. The copper bears have gained the overall near-term technicaladvantage. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at 450.00 cents. The next downsideprice objective for the bears is closing prices below solid technical supportat 415.00 cents. First resistance is seen at today's high of 436.05 cents andthen at 440.00 cents. First support is seen at today's low of 426.85 cents andthen at 422.50 cents. Wyckoff's MarketRating: 4.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@kitco.comwww.kitco.com