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Price pullbacks in gold, silver, on routine profit taking

Jim Wyckoff

Kitco News

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(Kitco News) - Gold and silver prices are lower in early U.S. trading Wednesday, on corrective pullbacks from recent gains that saw gold hit a six-month high Tuesday an eight-month high last week. February gold was last down $11.00 at $1,812.10 and March silver was down $0.117 at $24.105.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The marketplace is quieter following the Christmas holiday and just ahead of the new year. Many markets, including the precious metals, are looking for fresh fundamental inputs to drive price direction.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are near steady and trading around $79.50 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.832%.  

U.S. economic data due for release Wednesday includes the weekly Johnson Redbook and chain store sales indexes, the Richmond Fed business survey and pending home sales.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the firm overall near-term technical advantage. Prices are in a seven-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 the overnight high of $1,822.80 and then at this week’s high of $1,841.90. First support is seen at today’s low of $1,805.20 and then at $1,800.00. Wyckoff's Market Rating: 7.0.

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the solid overall near-term technical advantage. A choppy, four-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 the December high of $24.525 and then at $25.00. Next support is seen at today’s low of $23.81 and then at $23.55. Wyckoff's Market Rating: 7.5.

This is what investors face in 2023
By Jim Wyckoff

For Kitco News

Contact jwyckoff@kitco.com
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.