Gold, silver rally on inflation worries, friendly charts

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 aresolidly higher near midday Wednesday. Concerns about rising inflation areprompting buying interest in the hard asset metals. Also, the technicalpostures for both precious metals have turned more bullish recently. Decembergold futures were last up $13.80 at $1,784.20.December Comexsilver was lastup $0.202 at $24.10 an ounce.

Globalstock markets were mostly higher in overnight trading. The U.S. stock indexesare higher at midday. The U.S. stock indexes have made impressive recoveriesfrom their October lows and are now in position to challenge the record highsscored in September. Mostly upbeat corporate earnings reports are presentlytrumping worries about inflation and slowing global economic growth.

Inother news Bitcoin prices pushed well above $64,000 and hit a record highWednesday, after a U.S. exchange traded fund on the crypto-currency debuted onTuesday.

TheEurozone September consumer price index was reported up 0.5% from August and up3.4%, year-on-year. Those numbers were right in line with market expectationsand not deemed too hot. However, there remain growing notions that inflationarypressures will become stronger in the coming months. There are increasingreports of supply shortages for some critical raw commodities, such as copper,while at the same time shipping bottlenecks are keeping many supplies from reachingtheir destinations. Respected commodity trader Paul Tudor Jones said on CNBCtoday that inflationary pressures are not just transitory, adding that hebelieves the long side of commodity markets will be in keener favor in the comingmonths. Indeed, this situation is very likely to draw significantly morespeculators to the long side of raw commodity futures markets, including themetals.

Thekey outside markets today see the U.S. dollar index weaker. Crude oil pricesare higher and trading around $83.50 a barrel. Meantime, the 10-year U.S.Treasury note yield is presently fetching 1.65%.

Technically,December gold futures bulls have the overall near-term technical advantage amida three-week-old price uptrend in place on the daily bar chart. Bulls' nextupside price objective is to produce a close above solid resistance at theOctober high of $1,801.90. Bears' next near-term downside price objective ispushing futures prices below solid technical support at the September low of$1,721.10. First resistance is seen at today's high of $1,789.60 and then at$1,800.00. First support is seen at $1,775.00 and then at this week's low of$1,760.30. Wyckoff's Market Rating: 6.0

December silver futures prices hit a five-week hightoday. The silver bulls have the overall near-term technical advantage. Pricesare in a three-week-old uptrend on the daily chart. 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 $22.50. First resistance is seen at $24.50 and then at $24.75.Next support is seen at $24.00 and then at today's low of $23.615. Wyckoff'sMarket Rating: 6.0.

DecemberN.Y. copper closed down 15 points at 470.15 cents today. Prices closed nearerthe session high today. The copper bulls have the solid overall near-termtechnical advantage. Prices are in a steep four-week-old uptrend on the dailybar chart. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at the May high of 487.05 cents. Thenext downside price objective for the bears is closing prices below solidtechnical support at 440.00 cents. First resistance is seen at this week's highof 482.30 cents and then at 487.05 cents. First support is seen at today's lowof 459.35 cents and then at 455.00 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.

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