Solid gold and silver gains ahead of US inflation data

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(Kitco News) – Gold and silver prices saw good gains in early US trading on Tuesday, aided by some chart-based buying, short covering in the futures market, and a weaker US dollar index that day. The December gold futures last rose by USD 17.90 to USD 1,777.00. December Comex silver last rose $ 0.436 to $ 22.95 an ounce.

Global equity markets were mixed in overnight trading. The US stock indices point to slightly higher openings at the start of the New York day session.

The focus of the market midweek is on the September US Consumer Price Index report, up 0.3% from August and 5.3% year-over-year. Rising energy costs and supply chain bottlenecks in recent weeks have made traders and investors even more focused on the inflation outlook in the coming months. The Federal Reserve will scrutinize today’s CPI data as it considers timing to slow its monthly government bond purchases (quantitative easing).

On the overnight news, China announced that its exports rose 28.1% yoy in September, while imports rose 17.6%. The number of exports was slightly higher than expected and the number of imports slightly lower than expected.

Major foreign markets see the US dollar index lower today. Nymex’s crude oil futures are weaker, trading at around $ 80.00 a barrel. The yield on ten-year US Treasuries is now 1.565%.

Other US economic data slated to be released Wednesday includes the weekly MBA mortgage application survey, FOMC minutes, and Treasury Department’s monthly budget report.

Tech-wise, the December gold futures bulls and bears are now back on a general short-term technical playing field. The bulls’ next target price is to hit a close above the solid resistance at $ 1,800.00. Bears’ next near-term target is to push futures prices below solid technical support at the September low of $ 1,721.10. Initial resistance is seen at the October high of $ 1,782.40 and then $ 1,788.40. Initial support is seen at the overnight low of $ 1,759.80 and then the weekly low of $ 1,749.90. Wyckoff’s market valuation: 5.0

Live 24 hour silver chart [ Kitco Inc. ]

The silver bears have the overall short term technical advantage. The silver bulls’ next price target is the December futures closing price above solid technical resistance at $ 24.00 an ounce. The next downside target for the bears is to close below solid support at the September low of $ 21.41. Initial resistance is at $ 23.00 and then at the October high of $ 23.22. The next support is seen at the overnight low of $ 22.48 and then the weekly low of $ 22.325. Wyckoff’s market valuation: 2.5.

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 the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and / or damage that might arise from the use of this publication.


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