Gold price powers to 2-mo. high on inflation concerns

(Kitco News, Mon. Nov. 8th, 2021) – Gold and silver prices are modestly up in early U.S. trading Monday, with gold notching a two-month high. It appears the metals traders have turned their focus from the bearish aspects of a tighter U.S. monetary policy, to the bullish prospects of rising and even problematic price inflation in the coming months. December gold was last up $2.60 at $1,819.40 and December Comex silver was last up $0.173 at $24.33 an ounce.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to mixed openings when the New York day session begins. The U.S. indexes hit record highs last Friday. There remains little risk aversion in the global marketplace at present. The U.S. House of Representatives late Friday approved a pared-down U.S. government spending plan.

In other weekend news, China reported its October imports were up 20.6%, year-on-year, which was less than expected. However, China’s exports in the period were higher than expected, at up 27.1%.

China’s Communist Party has begun a four-day meeting at which President Xi Jinping is expected to make a move to extend his rule indefinitely. Xi wants to extend his ambitious plans for the domestic economy and its global economic and geopolitical power.

The key outside markets today see the U.S. dollar index weaker after hitting a new high for the year last Friday. Nymex crude oil prices are higher and trading around $82.15 a barrel. The oil market bulls have become wobbly. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.481%.

U.S. economic data due for release Monday is light and includes the employment trends index.

Technically, December gold futures bulls have the overall near-term technical advantage and have momentum. They have restarted a five-week-old uptrend on the daily bar chart. Bulls’ next upside price objective 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 prices below solid technical support at the November low of $1,758.50. First resistance is seen at the overnight high of $1,823.00 and then at $1,830.00. First support is seen at the overnight low of $1.813.80 and then at $1,800.00.

The silver bulls and bears are back on a level overall near-term technical playing field. Silver bulls’ next upside price objective is closing December futures prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.50. First resistance is seen at $24.50 and then at $24.75. Next support is seen at the overnight low of $24.13 and then at $24.00.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com