The bulls bought on the dips, while the analyst pointed to bullish price action for gold and silver. Gold and silver prices were higher in early US trading on Wednesday. The bulls stepped in to buy the metal price dips on Tuesday, which is a sign of strong markets. Gold and silver as a hedge against inflation continue to be the main bullish factor in the market at the moment. December gold was last down $12,80 at $1,866.60 and December Comex silver was last up $25,205, up $0.271.
upside for gold price
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As we reported , global stock markets were mixed in overnight trading. US stock indexes point to mixed openings as the New York daily session begins. US equity investors’ focus remains on the upbeat corporate earnings. Still, markets are stalling due to inflation concerns and concerns over rising Covid-19 cases in Asia and Europe. In the overnight news, the euro area October consumer price index rose 0.8% compared to September and increased by 4.1% year on year. The UK, meanwhile, reported its consumer inflation rate of 4.2% year-on-year in October, the biggest increase in a decade. These figures are more than double what the European Central Bank and the Bank of England say they want to see.
Today, major foreign markets see the US dollar index weaken after hitting a 15-month high overnight. Nymex crude prices are lower, trading around $80.00 a barrel. The 10-year U.S. Treasury bond yield is currently 1%. It brings 628. U.S. economic data, released Wednesday, includes the weekly MBA mortgage applications survey, new home builds, and the weekly DOE liquid energy stocks report.
Technical indicators
Technically, December futures gold bulls generally give short-term technical advantage and momentum. According to the analyst, there is a six-week uptrend on the daily bar chart. The bulls’ next upside price target is to produce a close above solid resistance at $1,900.00. The bears’ next short-term bearish price target is to push futures prices below solid technical support at $1,800.00. Initial resistance is seen at this week’s high at $1,879.50, followed by $1,900.00. Initial support is seen at this week’s low at $1,851.00 followed by $1,839.00.
Silver bulls generally have a short-term technical advantage over the analyst. Prices are in a six-week uptrend on the daily bar chart. The silver bulls’ next upside price target is to close December futures prices above solid technical resistance at $26.13 an ounce. The next downside price target for the bears is to close prices below the solid support at $23.00. Initial resistance is seen at this week’s high at $25.49 followed by $25.75. The next support is seen at this week’s low at $24.825 followed by $24.50.
