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Gold, silver pressured by upbeat U.S. data

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Welcome to Kitco News' 2023 Outlook Series. Uncertainty continues to dominate financial markets as central bank monetary policies push the global economy into a recession to cool down inflation. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2023.

(Kitco News) - Gold and silver prices are solidly lower in midday U.S. trading Thursday. The metals market bulls today are feeling the heat of a U.S. economy that does not seem like it wants to slide into a recession any time soon, following stronger-than-expected U.S. data released this morning. February gold was last down $21.10 at $1,804.30 and March silver was down $0.399 at $23.795.

Weekly U.S. jobless claims did not rise as much economists were expecting. Initial jobless claims rose slightly to 216,000, lower than the 222,000 forecast. The final third-quarter gross domestic product readings were surprisingly strong. The Q3 GDP came in at up 3.2%, versus the consensus forecast for a rise of 2.9%. Personal consumption expenditures were up 4.3% in the third quarter and the core PCE was a bit higher than expected at up 4.7 percent.

Today's U.S. data falls into the camp of the U.S. monetary policy hawks, who want the Federal Reserve to keep their foot on the policy-tightening accelerator. "Wall Street still is pricing in one more rate hike at the February FOMC meeting, but if the U.S. data does not break, a March hike should start to get priced in," said Edward Moya of OANDA.

Global stock markets were mixed overnight. U.S. stock indexes are pointed solidly lower at midday. Trading volumes are likely to wane on Friday, just ahead of the Christmas holiday over the weekend and as a massive winter storm pounds much of the U.S. and is heading for the east coast.


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Rising Covid infections in China have the marketplace pensive late this week. Bloomberg reported China is experiencing 1 million new infections and 5,000 virus deaths each day, following the Chinese government's relaxation of Covid restrictions.

The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are near steady trading around $78.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.675%. 

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls still have the overall near-term technical advantage. A six-week-old uptrend is in place on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the December high of $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at $1,820.00 and then at this week's high of $1,833.80. First support is seen at $1,800.00 and then at this week's low of $1,793.20. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures saw some profit taking today after prices hit an eight-month-high on Wednesday. The silver bulls still have the firm overall near-term technical advantage. Prices are in a choppy 3.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the December low of $22.19. First resistance is seen at $24.00 and then at today's high of $24.215. Next support is seen at $23.50 and then at $23.00. Wyckoff's Market Rating: 7.0.

March N.Y. copper closed down 445 points at 376.55 cents today. Prices closed near the session low and scored a bearish outside day down today. The copper bulls and bears are on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 394.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 354.70 cents. First resistance is seen at today's high of 384.90 cents and then at the December high of 392.90 cents. First support is seen at this week's low of 372.30 cents and then at 370.00 cents. Wyckoff's Market Rating: 5.0.

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.