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Price gains for gold, silver amid bullish charts

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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 higher in early U.S. trading Friday, supported by technical buying as the near-term chart postures for both metals are bullish. It could also be that many speculators are reckoning more funds will come in on the long side of the gold and silver markets to start the new trading year, and those specs want to be in the market before that happens. Trading activity may wane quickly today, ahead of the Christmas holiday weekend. February gold was last up $9.40 at $1,804.70 and March silver was up $0.308 at $23.93.

The U.S. data point of the day is the personal income and outlays report for November, including inflation components. The personal consumption expenditures index is seen coming in up 6.0%, year-on-year and up 0.3% from last month.

Global stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward slightly firmer openings when the New York day session begins, on tepid corrective rebounds and short covering after hitting six-week lows on Thursday. Trading was quieter overnight and volumes are likely to be low on this last trading day before the Christmas holiday over the weekend.

Stronger-than-expected U.S. economic data on Thursday was a wake-up call to traders and investors that the Federal Reserve is unlikely to stop tightening U.S. monetary policy until well into 2023. The better gross domestic product report also suggested the U.S. economy is not ready to slip into recession.

The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are up and trading around $79.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.714%.  

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U.S. economic data due for release Friday includes personal income and outlays, durable goods orders, new residential sales and the University of Michigan consumer sentiment survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at $1,823.00 and then at this week’s high of $1,833.80. First support is seen at this week’s low of $1,892.70 and then at $1,882.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the firm overall near-term technical advantage. A choppy, three-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at this week’s high of $24.525 and then at $25.00. Next support is seen at Thursday’s low of $23.55 and then at $23.00. Wyckoff's Market Rating: 7.0.

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.