Gold, silver hit 4-week highs on improved charts, inflation worries

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(Kitco News) - Gold and silver prices arehigher in midday U.S. trading Thursday and hit four-week highs. The metals arebeing propelled up by improving near-term chart postures and lingering concernsabout rising and even problematic price inflation. December gold futures werelast up $4.30 at $1,798.80. December Comex silver was last up $0.34 at $23.51 anounce.

TheU.S. data point of the day Thursday saw the producer price index report forSeptember come in at up 0.5% from August, compared to expectation of a 0.6%rise and compares to a 0.7% rise reported in the August report. The U.S.consumer price index report on Wednesday ran a little hotter than expected.Meantime, in China, its producer price index in September rose a record 10.7%,year-on-year. The August reading was up 9.5%. Recent inflation gauges from themajor world economies are suggesting higher inflation may be more than justtransient, as has been repeatedly suggested by Federal Reserve Chairman JayPowell. It appears gold and silver traders may be finally realizing that risinginflationary pressures are bullish for metals, as history shows.

Globalstock markets were mixed but mostly higher in overnight trading. The U.S. stockindexes are solidly higher at midday. The rally in the equities did tempergains in the safe-haven metals today. U.S. corporate earnings reports arefeatured this week.

Thekey outside markets today see the U.S. dollar index slightly lower. Nymex crudeoil futures are higher and trading around $81.75 a barrel. Meantime, the10-year U.S. Treasury note yield is presently fetching around 1.54%.

Technically,December gold futures bulls have the overall near-term technical advantage amida fledgling uptrend in place on the daily bar 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 futuresprices below solid technical support at this week's low of $1,749.90. Firstresistance is seen at today's high of $1,801.90 and then at $1,810.60. Firstsupport is seen at today's low of $1,787.60 and then at $1,775.00. Wyckoff'sMarket Rating: 6.0

December silver futures bears still have the slightoverall near-term technical advantage. However, gains this week have started aprice uptrend on the daily chart and also suggest a market bottom is in place.Silver bulls' next upside price objective is closing prices above solidtechnical resistance at $25.00 an ounce. The next downside price objective forthe bears is closing prices below solid support at $22.00. First resistance isseen at $23.75 and then at $24.00. Next support is seen at $23.00 and then at$22.50. Wyckoff's Market Rating: 4.5.

DecemberN.Y. copper closed up 1,095 points at 462.60 cents today. Prices closed nearthe session high today and hit a 4.5-month high. The copper bulls have theoverall near-term technical advantage and gained more power today. Prices arein a steep three-week-old uptrend on the daily bar chart. Copper bulls' nextupside price objective is pushing and closing prices above solid technicalresistance at the May high of 487.05 cents. The next downside price objectivefor the bears is closing prices below solid technical support at 430.00 cents.First resistance is seen at today's high of 463.85 cents and then at 470.00cents. First support is seen at 450.00 cents and then at 447.15 cents.Wyckoff's Market Rating: 7.5.

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.

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