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Gold price rises to 4-week high with chart-based purchases, weaker greenback

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(Kitco News) – Gold and silver prices saw sharp gains in US midday trading Wednesday, with both metals hitting four-week highs. Buy-stop orders were placed on the futures markets for the metals after important technical resistance levels were broken. A sell-off of the US dollar index also favored the precious metal bulls today. The gold futures in December last rose by USD 35.90 to USD 1,795.00. Comex silver last rose $ 0.646 to $ 23.16 an ounce in December.

The focus of the market midweek was the September US Consumer Price Index report, up 0.4% year-over-year and 5.4% year-over-year. The numbers were
expects an increase of 0.3% over August and an increase of 5.3% over the previous year. Today’s somewhat warmer CPI data has arguably landed in the camp of US monetary policy makers who want to see the Federal Reserve tightening monetary policy sooner rather than later. The US dollar index gained some ground following the release of the CPI report but is still trading slightly in the red on the day. Rising energy costs and supply chain bottlenecks in recent weeks have kept 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).

The US stock indices are mixed at noon. The recent shakiness in US stock indices is also creating safe haven buying in the gold and silver markets.

Traders will scrutinize the minutes of the Federal Reserve’s final FOMC meeting on Wednesday afternoon.

Technically, the gold bulls have gained the slight overall short-term technical advantage. The prices are now in a young upward trend on the daily bar chart. 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 today’s high of $ 1,797.40 and then $ 1,800.00. The initial support is at $ 1,782.40 and then at $ 1,770.00. Wyckoff’s market valuation: 5.5

Live 24 hour silver chart [ Kitco Inc. ]

The December silver futures still have the overall short-term technical advantage. However, further gains this week would trigger an uptrend in prices on the daily chart and also indicate that the market is at a low. The silver bulls’ next price target is to close 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 will be seen at today’s high of $ 23.285 and then $ 23.50. The next support is seen at $ 22.75 and then today’s low of $ 22.48. Wyckoff’s market valuation: 3.5.

December NY Copper closed 1,910 points at 451.70 cents today. Prices closed near the session high today and hit a 10-week high. The Copper Bulls have the overall short term technical advantage and have gained more power today. The copper bulls’ next target is to push and close above solid technical resistance at the July high of 458.60 cents. The next downside target price for the bears is to close below solid technical support at 425 cents. Initial resistance is seen at today’s high of 452.45 cents and then 458.60 cents. Initial support is seen at 445.00 cents and then at 440.00 cents. Wyckoff’s market valuation: 6.5.

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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