Gold, silver power higher amid price uptrends

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) -Goldprices are up again and hit a five-month high in early U.S. trading Tuesday. Silver pushed to a three-month high. Gold and silver bulls remain in firm technicalcontrol amid near-term price uptrends firmly in place. That suggests the pathof least resistance for prices will remain sideways to higher in the near term. December gold was last up $11.00 at $1,877.60 and December Comex silver was lastup $0.36 at $25.455 an ounce.

Globalstock markets mostly firmer in overnight trading. The U.S. stock indexes are pointedto mixed openings when the New York day session begins. The stock indexes havebeen in a pause mode recently, as traders and investors weigh positive corporateearnings reports against rising inflation and rising Covid-19 cases in Asia,Europe and even in regions of the U.S.

TheU.S. economic data point of the day is the October retail sales report, expectedto come in at up 1.5% from September. Sales rose 0.7% in September from August.

U.S.President Joe Biden and China President Xi Jinping met in a conference call onMonday, with both sides saying the meeting was upbeat-even if not much tangiblecame out of the meeting.

Inother overnight news, the Euro zone third-quarter GDP was reported up 2.2% fromthe second quarter and up 3.7%, year-on-year. Those numbers were in line withmarket expectations.

Themonthly report from the International Energy Agency (IEA) said the end is insight for crude oil’s rally, even as some oil traders and producers predict$100 oil. Demand growth remains robust, but supply is catching up and changesin oil stockpiles seen in October suggest “the tide might be turning,” accordingto the IEA. “The world oil market remains tight by all measures, but a reprievefrom the price rally could be on the horizon.” The agency said production inthe U.S. is ramping up in tandem with stronger oil prices. IEA kept its outlookfor oil demand growth largely steady at 5.5 million barrels per day (bpd) for2021 and 3.4 million bpd next year.

Bitcoinprices dropped over 5% overnight.

Thekey outside markets today see the U.S. dollar index firmer. Nymex crude oilprices are higher and trading around $81.20 a barrel. The crude oil marketbulls appear to have run out of gas and a market top could be in place. Meantime,the 10-year U.S. Treasury note yield is presently fetching 1.605%. The 10-year yield has recently spiked up.

It’sa very busy day for U.S. economic releases Tuesday, including the weeklyJohnson Redbook and chain store sales indexes, retail sales, import and exportprices, industrial production and capacity utilization, manufacturing and tradeinventories, the NAHB housing index and Treasury international capital data.

Technically, December gold futures bulls have the firm overall near-term technical advantageand have momentum. A six-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 belowsolid technical support at $1,800.00. First resistance is seen at $1,885.00 andthen at $1,900.00. First support is seen at the overnight low of $1,863.90 andthen at this week’s low of $1.858.50. Wyckoff's Market Rating: 7.0.

The silver bulls have the overall near-term technicaladvantage. 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 technicalresistance at $26.13 an ounce. The next downside price objective for the bears isclosing prices below solid support at $23.00. First resistance is seen at $25.75and then at $26.00. Next support is seen at $25.00 and then at $24.645. Wyckoff'sMarket Rating: 6.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com 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.

Monetary-driven precious metals outperform major base metals

Gold stocks hit by plunging equities markets

Gold stocks down as metal and equities momentum fades

Another Kazatomprom guidance announcement shakes uranium price

Major monetary drivers still supporting gold