Gold price surges to 4 week high on USD’s weakness

Gold price is posting strong gains in midday U.S. trading Wednesday, hitting 4 week highs. Buy stop orders were hit in the futures markets after key technical resistance levels were penetrated on the upside.

A selloff in the U.S. dollar index today also worked in favor of the precious metal market bulls. December gold futures were last up $35.90 at $1,795.00. December Comex silver was last up $0.646 at $23.16 per ounce.

The focus of the marketplace at mid-week was on the U.S. consumer price index report for September, which came in at up 0.4% from August and up 5.4%, year-on-year. The numbers were expected up 0.3% from August and up 5.3% year-on-year.

The U.S. dollar index gained some ground after the CPI report was released but is still trading slightly down on the day by 0.2% at 94.362.

Traders Wednesday afternoon closely examine the minutes of the last FOMC meeting of the Federal Reserve.