Price gains for gold, silver; inflation train leaving the station

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) -Gold and silver prices are higher and near this week's multi-month highs in earlyU.S. trading Thursday. Traders and investors are scrambling to get on boardwith hard assets like the precious metals, on rising fears of problematic priceinflation. December gold was last up $12.90 at $1,861.30 and December Comex silver was last up $0.223 at $24.99 an ounce.

Globalstock markets were flat to a bit higher in overnight trading. The U.S. stock indexesare pointed to firmer openings when the New York day session begins. The focusof the marketplace is now on the increasing odds of higher and even problematicprice inflation worldwide. Two U.S. inflation reports this week ran hot andunderscored inflation is tightening its grip on world economies. The U.S. consumerprice index report released Wednesday showed inflation running at a 30-plus yearhigh. Gold prices hit a five-month high and silver scored a three-month high onWednesday, as traders and investors seek out inflation hedges in hard assets. Thereare now growing notions the Federal Reserve will be forced to raise U.S.interest rates much sooner that the central bank has recently suggested.

Todayis a U.S. federal holiday, Veterans Day, and the U.S. government and Treasurymarkets are closed. There is no U.S. economic data due for release Thursday,due to the holiday.

Inovernight news, the Euro zone forecast its economic growth in 2021 at 5.0%, atup 4.3% in 2022 and at 2.4% growth in 2023. The Euro zone forecast itsinflation in 2021 at up 2.4%, up 2.2% in 2022 and up 1.4% in 2023. Thoseinflation forecasts seem low when compared to inflation numbers that have beenreleased recently.

Thekey outside markets today see the U.S. dollar index higher and hitting a 15-monthhigh overnight. Nymex crude oil prices are lower and trading around $80.50 abarrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.57%.

Technically,December gold futures bulls have the firm overall near-term technical advantageand have momentum. A five-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 this week'shigh of $1,870.60 and then at $1,875.00. First support is seen at $1,850.00 andthen at the overnight low of $1.845.10. 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 thisweek's high of $25.22 and then at $25.50. Next support is seen at the overnightlow of $24.645 and then at $24.50. 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.

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