What's the Reason for Gold's Price Reaching a 2 Month High?

The prices of gold were modestly up in the early U.S. trading on Monday. In fact, gold reached a two-month high on that day. It seems that metal traders have shifted their focus from the bearish aspects of a comparatively tighter monetary policy of the U.S. and switched it to the bullish prospects of rising price inflation that might occur in the upcoming months. December gold was last up US$ 2.60 and reached US$ 1,819.40, and December Comex silver was last up US$ 0.173 and reached US$ 24.33 an ounce.

When it comes to global stock markets, they were mixed in overnight trading. The U.S. stock indexes also show mixed openings when the New York day session starts. The U.S. indexes had also hit record highs last Friday. The risk aversion is low in the global marketplace currently. A pared-down U.S. government spending plan was approved by the House of Representatives on Friday.

Other news from the global trade world includes that China has reported that its October imports have increased by over 20% YoY. It was less than expectations. The exports of the country were higher than expected as well. They were up at over 27%.

The Communist Party in China also started a four-day meeting in which President Xi Jinping might make a move to extend his rule indefinitely. Xi probably wants to extend his ambitious plans for the domestic economy as well as its global economic and geopolitical power.

The primary outside markets saw the U.S. dollar index weaker after reaching a new high for the year last Friday. The oil prices of Nymex crude oil are higher than expected and trading around US$ 82.15 per barrel. Also, the oil markets bull has seemingly become wobbly. On the other hand, the 10-year U.S. Treasury note yield is currently getting 1.481%.

The U.S. economic data, which will be released on Monday, was light and included the employment trends index.

Technically the December gold futures bulls have the overall near-term technical advantage as well we momentum. They restarted a five-week-old uptrend on the daily bar chart. The next upside price objective of Bulls is pushing futures prices below solid technical support at the November low of US$ 1,758.50. First resistance can be seen at the overnight high of US$ 1,823 and then US$ 1,830. Similarly, the first support is seen at an overnight low of US$ 1,813.80 and 1,800. Wyckoff's Market Rating is 6.5.

Interestingly, the silver bears and bulls are back on a level overall near-term technical playing field. The next upside price objective of silver bulls is closing December futures prices above solid technical resistance at US$ 25 per ounce. The next downside price objective for the bears is closing prices below solid support at US$ 22.50. First resistance is seen at US$ 24.50 and US$ 24.75. Next, support is seen at the overnight low of US$ 24.13 and US$ 24. Wyckoff's Market Rating is 5.

To check the daily gold prices in Canada, click here.

To know more about Gold demand in 2022, click here.

by Shruti , BNS Business News




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