Gold, silver power higher as investors seek inflation hedge
(Kitco News) -Gold and silver prices are solidly higher at middayWednesday, with gold notching a five-month high and silver a three-month peak.Hot inflation numbers from the U.S. and China fueled buying interest in the preciousmetals markets today, as traders and investors are seeking out hard-assethedges against rising prices. December gold was last up $26.70 at $1,857.60 andDecember Comex silver was last up $0.827 at $25.14 an ounce.
Today's U.S. consumer price index for October camein at up 0.9% and up 6.2%, year-on-year. The CPI was expected to come in at up0.6% from September and up 5.9%, year-on-year. The October numbers are thehighest U.S. CPI readings in over 30 years. Tuesday's U.S. producer price indexshowed a rise of 8.6%, year-on-year.
Meantime, China's producer price index on Wednesdaywas reported up 13.5% in October, year-on-year, and up from a 10.7% rise inSeptember. That is the fastest factory gate price rise in 26 years. Extremeweather and coal shortages are being reflected in China's rising PPI.
Global stock markets were mixed in overnighttrading. The U.S. stock indexes are slightly weaker at midday. Traders andinvestors are a bit more risk-averse at mid-week--paying more attention to theprospects for rising and even problematic price inflation.
The key outside markets today see the U.S. dollarindex solidly higher. Nymex crude oil prices are lower and trading around $83.15a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching1.512%.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, December gold futures prices hit afive-month high today. Bulls have the firm overall near-term technical advantageand gained more power today. Prices are in a five-week-old uptrend on the dailybar chart. Bulls' next upside price objective is to produce a close above solidresistance at $1,900.00. Bears' next near-term downside price objective ispushing futures prices below solid technical support at $1,800.00. Firstresistance is seen at today's high of $1,870.60 and then at $1,880.00. Firstsupport is seen at $1,839.00 and then at today's low of $1,823.00. Wyckoff'sMarket Rating: 7.0.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
December silver futures priceshit a three-month high today. The silver bulls have gained the overallnear-term technical advantage and have restarted a six-week-old uptrend on thedaily bar chart. Silver bulls' next upside price objective is closing pricesabove solid technical resistance at $26.13 an ounce. The next downside priceobjective for the bears is closing prices below solid support at the Novemberlow of $23.045. First resistance is seen at $25.50 and then at $25.75. Nextsupport is seen at $24.59 and then at $24.25. Wyckoff's Market Rating: 6.0.
December N.Y. copper closeddown 160 points at 435.70 cents today. Prices closed nearer the session lowtoday. The copper bulls and bears are on a level overall near-term technicalplaying field amid recent choppy trading. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at460.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at 410.00 cents. First resistance is seen at thisweek's high of 444.75 cents and then at 450.00 cents. First support is seen atthis week's low of 433.00 cents and then at last week's low of 427.80 cents.Wyckoff's Market Rating: 5.0.By Jim WyckoffFor Kitco News
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