Upside price action for gold, silver as bulls buy dip

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 in early U.S. trading Wednesday. Bulls stepped into buy Tuesday's dips in the metals' prices, which is a sign of strong markets.Gold and silver as an inflation hedge remains the major bullish element in themarketplace at present. December gold was last up $12.80 at $1,866.60 and DecemberComex silver was last up $0.271 at $25.205 an ounce.

Globalstock markets were mixed in overnight trading. The U.S. stock indexes are pointedto mixed openings when the New York day session begins. Focus for U.S. equitiestraders remains on corporate earnings, which have been upbeat. Also, holidayspending is under way and that has businesses and investors in good moods.Still, markets are pausing due to inflation worries and concerns about rising Covid-19cases 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.

Thekey outside markets today see the U.S. dollar index weaker after hittinganother 15-month high overnight. Nymex crude oil prices are lower and trading around$80.00 a barrel. The 10-year U.S. Treasury note yield is presently fetching 1.628%.

U.S.economic data due for release Wednesday includes the weekly MBA mortgageapplications survey, new residential construction and the weekly DOE liquid energystocks report.

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 this week'shigh of $1,879.50 and then at $1,900.00. First support is seen at this week'slow of $1,851.00 and then at $1.839.00. 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 thisweek's high of $25.49 and then at $25.75. Next support is seen at this week'slow of $24.825 and then at $24.50. Wyckoff's Market 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