Gold firmer, hits 2-mo. high, as U.S. inflation report not tame
(Kitco News) -Gold prices are modestly higher and hit anothertwo-month high in midday dealings Tuesday. The yellow metal bulls are touting aU.S. inflation report that did not tamp down worries about rising prices. Decembergold was last up $3.80 at $1,831.70 and December Comex silver was last down $0.257at $24.29 an ounce.
The U.S. data point of the day Tuesday saw theproducer price index report for October come in at up 0.6%, which was in linewith market expectations. Year-on-year, the October PPI was up 8.6%. TheSeptember report showed a rise of 0.5%. While in line with forecasts, today'sU.S. PPI report certainly does not alleviate any concerns about risinginflationary pressures. The gold market erased modest early losses and pushedto mildly higher price levels on the day, in the aftermath of the report. As Ireported Monday, it appears metals traders are now focusing more on the bullishaspects of rising inflation, and less on the Federal Reserve's monetarypolicy-at least for now.
Global stock markets were mixed in overnighttrading. The U.S. stock indexes are lower at midday, as it also appears stockmarket bulls are a bit more worried about inflation. Still,
there remains little overall risk aversion in theglobal marketplace at present. Recent positive news on the Covid-19front-falling infection rates in the U.S. and new, powerful drugs to combat thevirus-have contributed to the upbeat marketplace attitudes.
In other news, Bitcoin prices rose to another recordhigh near $68,000.
The key outside markets today see the U.S. dollarindex a bit weaker. The USDX last week hit a new high for the year. Nymex crudeoil prices are higher and trading around $82.65 a barrel. Meantime, the 10-yearU.S. Treasury note yield is presently fetching 1.431%.
![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 another two-month high today. Bulls have theoverall near-term technical advantage amid a five-week-old uptrend in place onthe daily bar chart. Bulls' next upside price objective is to produce a closeabove solid resistance at the July high of $1,839.00. Bears' next near-termdownside price objective is pushing futures prices below solid technicalsupport at the November low of $1,758.50. First resistance is seen at theSeptember high of $1,836.90 and then at $1,839.00. First support is seen attoday's low of $1,821.00 and then at this week's low of $1,813.80. Wyckoff'sMarket Rating: 6.5.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
December silver futures bulls and bears are on alevel overall near-term technical playing field. Silver bulls' next upsideprice objective is closing prices above solid technical resistance at $25.00 anounce. The next downside price objective for the bears is closing prices belowsolid support at $23.00. First resistance is seen at this week's high of $24.59and then at the September high of $24.945. Next support is seen at today's lowof $24.09 and then at $24.00. Wyckoff's Market Rating: 5.0.
December N.Y. copper closed down 305 points at 436.85cents today. Prices closed nearer the session low today. The copper bulls andbears are on a level overall near-term technical playing field amid recentchoppy trading. Copper bulls' next upside price objective is pushing andclosing prices above solid technical resistance at 460.00 cents. The nextdownside price objective for the bears is closing prices below solid technicalsupport at 410.00 cents. First resistance is seen at today's high of 444.75cents and then at 450.00 cents. First support is seen at this week's low of433.00 cents and then at last week's low of 427.80 cents. Wyckoff's MarketRating: 5.0. By Jim WyckoffFor Kitco News
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