Gold, silver power higher amid price uptrends

(Kitco News, Tues. Nov. 16th, 2021)  – Gold prices are up again and hit a five-month high in early U.S. trading Tuesday. Silver pushed to a three-month high. Gold and silver bulls remain in firm technical control amid near-term price uptrends firmly in place. That suggests the path of least resistance for prices will remain sideways to higher in the near term. December gold was last up $11.00 at $1,877.60 and December Comex silver was last up $0.36 at $25.455 an ounce.

Global stock markets mostly firmer in overnight trading. The U.S. stock indexes are pointed to mixed openings when the New York day session begins. The stock indexes have been in a pause mode recently, as traders and investors weigh positive corporate earnings reports against rising inflation and rising Covid-19 cases in Asia, Europe and even in regions of the U.S.

The U.S. economic data point of the day is the October retail sales report, expected to come in at up 1.5% from September. Sales rose 0.7% in September from August.

U.S. President Joe Biden and China President Xi Jinping met in a conference call on Monday, with both sides saying the meeting was upbeat—even if not much tangible came out of the meeting.

In other overnight news, the Euro zone third-quarter GDP was reported up 2.2% from the second quarter and up 3.7%, year-on-year. Those numbers were in line with market expectations.

The monthly report from the International Energy Agency (IEA) said the end is in sight for crude oil’s rally, even as some oil traders and producers predict $100 oil. Demand growth remains robust, but supply is catching up and changes in oil stockpiles seen in October suggest “the tide might be turning,” according to the IEA. “The world oil market remains tight by all measures, but a reprieve from the price rally could be on the horizon.” The agency said production in the U.S. is ramping up in tandem with stronger oil prices. IEA kept its outlook for oil demand growth largely steady at 5.5 million barrels per day (bpd) for 2021 and 3.4 million bpd next year.

Bitcoin prices dropped over 5% overnight.

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are higher and trading around $81.20 a barrel. The crude oil market bulls appear to have run out of gas and a market top could be in place. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.605%. The 10-year yield has recently spiked up.

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It’s a very busy day for U.S. economic releases Tuesday, including the weekly Johnson Redbook and chain store sales indexes, retail sales, import and export prices, industrial production and capacity utilization, manufacturing and trade inventories, the NAHB housing index and Treasury international capital data.

Technically, December gold futures bulls have the firm overall near-term technical advantage and have momentum. A six-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,885.00 and then at $1,900.00. First support is seen at the overnight low of $1,863.90 and then at this week’s low of $1.858.50.

The silver bulls have the overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing December futures prices above solid technical resistance at $26.13 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $25.75 and then at $26.00. Next support is seen at $25.00 and then at $24.645.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com