Gold price pushes to 5-month high as bulls remain strong

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(Kitco News) -Goldprices are slightly higher in early U.S. trading Monday and did poke to anotherfive-month high. Gold and silver bulls remain in technical control amidnear-term price uptrends firmly in place. Fears of rising inflationarypressures are also inviting new buying interest in the hard-asset preciousmetals. December gold was last up $3.10 at $1,871.50 and December Comex silver waslast down $0.046 at $25.30 an ounce.

Globalstock markets mostly up in overnight trading. The U.S. stock indexes are pointedto firmer openings when the New York day session begins. Traders and investorsare weighing the bullish aspect of upbeat third-quarter corporate earningsreports versus the bearish implications of rising inflationary pressures.

Anotherworrisome element in the marketplace is rising Covid-19 cases in China and partsof Europe. Some countries are again imposing business and public restrictions,which could crimp economic growth.

Inother overnight news, China got some positive economic news when its industrialproduction in October was reported up 3.5%, year-on-year, which was higher thanthe 2.8% rise expected. Retail sales in October rose 4.9%, year-on-year-better thanthe 3.5% rise that was expected.

Thekey outside markets today see the U.S. dollar index a bit weaker after hittinga 15-month high on Friday. Nymex crude oil prices are lower and trading around$79.75 a barrel. The crude oil market bulls appear to have run out of gas and amarket top could be in place. Meantime, the 10-year U.S. Treasury note yield ispresently fetching 1.553%.

U.S.economic data due for release Monday is light and includes the Empire Statemanufacturing survey. The data pace picks up speed rapidly on Tuesday.

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 the overnighthigh of $1,872.60 and then at $1,885.00. First support is seen at the overnightlow of $1,858.50 and then at $1.850.00. Wyckoff's Market Rating: 7.0.

The silver bulls have the overall near-term technical advantage.Prices are in a six-week-old uptrend on the daily bar chart. Silver bulls' nextupside 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 lastweek's high of $25.47 and then at $25.75. Next support is seen at $25.00 and thenat $24.645. Wyckoff's Market Rating: 6.0. 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.

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