Gold Price Soars On Short Cover, Bargain Hunting, Crypto Rumors

Gold Price Soars On Short Cover, Bargain Hunting, Crypto Rumors

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(Kitco News) – Gold and silver prices are up sharply, with gold hitting a four-week high and trading above $1,700.00 by late morning in the United States. United on Tuesday. Silver hit a more than four-month high today. Precious metals are benefiting from heavy short coverage in futures markets, perceived bargain hunting in spot markets, and even some safe-haven demand as cryptocurrency markets sell off. December gold was last up $34.00 at $1,714.40 and December silver was up $0.601 at $21.53.

Rumors are swirling around the crypto markets of an exchange stopping withdrawals, and this has apparently spooked all crypto markets and helped boost safe-haven gold and silver.

Gold prices rose 62% of the time in the six months following the US midterm elections, with a median return of 2%, according to a World Gold Council report using data dating back to 1970.

Global stock markets were mostly higher overnight. US stock indices are higher as noon approaches. Tuesday’s U.S. midterm elections are the focus of market concern this week. Pollsters predict Democrats will lose the House and could lose the Senate.

Traders and investors are increasingly concerned about rising Covid cases in China, the world’s second-largest economy. Reports say the number of new cases topped 7,500 on Monday – the highest since May. Guangzhou, capital of Guangdong province and the country’s manufacturing hub, accounted for a third of the total number of cases. Broker SP Angel reports that China is likely two years behind the West in its war on Covid infections. “While Chinese manufacturers gained market share in global markets when the West locked down, the nation now stands to lose many foreign companies due to the ongoing lockdown risk. The lockdown of workers puts their human rights at risk.”

Major outside markets are seeing the US Dollar Index decline today after losing overnight gains. Nymex crude oil prices are lower and trading around $91.25 per barrel. The 10-year US Treasury yields around 4.0%.

The United States receives its next inflation-fighting bulletin on Thursday, with the release of the Consumer Price Index report for October, which is expected to rise 7.9%, year-on-year, from the 8.2% increase observed in September. report.

24 hour live gold chart [Kitco Inc.]

Technically, the bearish gold futures have the slight overall short-term technical advantage, but the bulls are gaining traction. Recent choppy, sideways price action suggests a market bottom is in place. The Bulls’ next upside price objective is to produce a close above the strong resistance at $1,800.00. Bears next short-term downside price objective is to push futures prices below strong technical support at the November low of $1,618.20. First resistance is seen at the October high of $1,728.70 and then at $1,750.00. First support is seen at $1,700.00 and then at the overnight low of $1,667.10. Wyckoff Market Rating: 4.5

24 hour live money chart [ Kitco Inc. ]

Silver bulls have the overall short-term technical advantage and gained more power today. A choppy nine-week uptrend is in place on the daily bar chart. The next upside price objective for silver bulls is to close prices above strong technical resistance at the June high of $22.80. The next downside price objective for the bears is to close prices below the strong support at $20.00. The first resistance is seen at $22.00 and then at $22.50. The next support is seen at $21.00, then at this week’s low at $20.435, then at $20.00. Wyckoff Market Rating: 6.5.

Disclaimer: The opinions 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 strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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