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Price gains for gold, silver, as Powell speech awaited

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(Kitco News) - Gold and silver prices are higher in early U.S. trading Wednesday. The key “outside markets” are friendly for the metals markets at mid-week and on this last trading day of the month, as the U.S. dollar index is lower and crude oil prices are higher. Trading most of today is likely to be subdued ahead of an afternoon speech by Federal Reserve Chairman Jerome Powell. February gold was last up $11.10 at $1,774.80 and March silver was up $0.319 at $21.75.

Global stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. It's a very busy day for U.S. economic data, with the highlight being the speech by Powell this afternoon at the Brookings Institution. Traders and investors will be watching to see if Powell makes a pivot from a hawkish to a bit more dovish U.S. monetary policy stance, given recent U.S. economic data that hints inflation may have peaked.

In overnight news, reports said public demonstrations in China increased Wednesday after a lull on Tuesday. China security forces are reported to be heavily deployed in major Chinese cities. The protests have prompted Chinese officials to somewhat ease their strict Covid restrictions.

In other news, Euro zone inflation fell in November for the first time since mid-2021, as the consumer price index was up 10%, year-on-year, compared to a reading of up 10.6% in October.

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The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are higher on a strong rebound after hitting an 11-month low Monday, and are trading around $80.25 a barrel. There are some reports OPEC at its meeting next week will consider cutting its collective crude oil production. Other reports say the cartel will leave its production unchanged. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.731%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, preliminary corporate profits and the second estimate of third-quarter GDP, advance economic indicators, the ISM Chicago business survey, the weekly DOE liquid energy stocks report and the Federal Reserve's beige book.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close in February futures above solid resistance at the November high of $1,806.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at this week's high of $1,778.50 and then at $1,790.00. First support is seen at the overnight low of $1,761.30 and then at this week's low of $1,752.90. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the overall near-term technical advantage. A choppy, 2.5-month-old uptrend is still in place on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at the November high of $22.50. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $22.00 and then at the November high of $22.50. Next support is seen at $21.00 and then at $20.79. Wyckoff's Market Rating: 6.0.

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 accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.