Price advances for gold, silver, amid inflation worries

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(Kitco News) - Gold and silver prices higherand near their daily highs in early U.S. trading Wednesday. Worries about risinginflation are prompting buying interest in the hard asset metals. Also, thetechnical postures for both precious metals have turned more bullish justrecently. December gold futures were last up $13.80 at $1,784.20. December Comexsilver was last up $0.202 at $24.10 an ounce.

Globalstock markets were mostly higher in overnight trading. The U.S. stock indexesare pointed to mixed openings when the New York day session begins. The U.S.stock indexes have made impressive recoveries from their October lows and arenow in position to challenge the record highs scored in September. Mostlyupbeat corporate earnings reports are presently trumping worries aboutinflation and slowing global economic growth.

In overnightnews Bitcoin prices pushed above $64,000 and are near the record high, after aU.S. exchange traded fund on the crypto-currency debuted on Tuesday.

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 increasing reportsof supply shortages for some critical raw commodities, such as copper, while atthe same time shipping bottlenecks are keeping many supplies from reachingtheir destinations.

Thekey outside markets today see the U.S. dollar index firmer. Crude oil pricesare lower and trading around $82.00 a barrel. Meantime, the 10-year U.S. Treasurynote yield is presently fetching 1.65%.

U.S.economic data due for release Wednesday includes the weekly MBA mortgageapplications survey, the weekly DOE liquid energy stocks report and the FederalReserve's beige book.

Technically,December gold futures bulls have the slight overall near-term technicaladvantage as prices are trending higher on the daily chart. Bulls' next upsideprice objective is to produce a close above solid resistance at the Octoberhigh of $1,801.90. Bears' next near-term downside price objective is pushing futuresprices below solid technical support at the September low of $1,721.10. First resistanceis seen at this week's high of $1,786.00 and then at $1,800.00. First supportis seen at the overnight low of $1,767.10 and then at this week's low of $1,760.30.Wyckoff's Market Rating: 5.5

The silver bulls have the overall near-term technicaladvantage. Prices are in a three-week-old uptrend. Silver bulls' next upside priceobjective is closing December futures prices above solid technical resistance at$25.00 an ounce. The next downside price objective for the bears is closing pricesbelow solid support at $22.50. First resistance is seen at $24.25 and then at $24.50.Next support is seen at the overnight low of $23.615 and then at $23.50. Wyckoff'sMarket Rating: 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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