Gold price up as it appears inflation genie out of the bottle

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(Kitco News) - Gold pricesare moderately higher in early U.S. trading Monday, supported by increasingworries about problematic price inflation. More and more economists and veteranmarket watchers are saying the bout of rising global inflation is somethingmore than just transitory. December gold futures were last up $6.50 at $1,802.70.December Comex silver was last up $0.011 at $24.465 an ounce.

Globalstock markets were mixed in overnight trading. The U.S. stock indexes are pointedto slightly higher openings when the New York day session begins. It's anotherbig week for U.S. corporate earnings, which have generally been very positiveand are helping push the indexes solidly higher from their early October lows.For the moment the upbeat earnings reports are overshadowing worries about "stagflation,"which means rising prices and stagnant global economic growth. The mainstreammedia has recently highlighted the shipping bottlenecks, especially on the U.S.west coast.

Newsreports over the weekend said the Biden Administration may be getting closer tohaving the Senate votes for a pared down government spending plan.

Thekey outside markets today see the U.S. dollar index firmer. Crude oil pricesare higher and trading around $84.50 a barrel after hitting a seven-year highovernight. Don't be surprised if continually rising energy prices heading intothe Northern Hemisphere winter start to sap trader and investor sentiment. Meantime,the 10-year U.S. Treasury note yield is presently fetching 1.656%.

U.S.economic data due for release Monday includes the Chicago Fed national activityindex and the Texas manufacturing outlook survey.

Technically,December gold futures bulls have the overall near-term technical advantage asprices are in a four-week-old uptrend on the daily chart. Bulls' next upside priceobjective is to produce a close above solid resistance at the September high of$1,836.90. Bears' next near-term downside price objective is pushing futures pricesbelow solid technical support at $1,750.00. First resistance is seen at today'shigh of $1,804.60 and then at last week's high of $1,815.50. First support is seenat the overnight low of $1,793.00 and then at Friday's low of $1,783.40. Wyckoff'sMarket Rating: 6.0

The silver bulls have the overall near-term technicaladvantage. Prices are in a four-week-old uptrend on the daily bar chart. Silverbulls' next upside price objective is closing December futures prices above solidtechnical resistance at $25.00 an ounce. The next downside price objective forthe bears is closing prices below solid support at $23.00. First resistance is seenat the overnight high of $24.61 and then at the September high of $24.945. Nextsupport is seen at Friday's low of $24.185 and then at $24.00. Wyckoff's MarketRating: 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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