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Gold price slightly down in quiet, holiday trading

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(Kitco News) - Gold prices are a bit lower and silver a bit higher in early U.S. trading Thursday, amid subdued dealings as 2022 winds down. Many traders are on holiday this week, making for lighter trading volumes and thin conditions. February gold was last down $2.30 at $1,813.60 and March silver was up $0.19 at $24.03.

Global stock markets were flat to weaker overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The marketplace is quieter this week following the Christmas holiday and just ahead of the new year.

The World Gold Council reports central bank gold buying at the highest rate since 1967, with Russia and China likely the leaders. “Sanctions on Russia and strained relations between the West and China have led to both countries adopting a policy of ‘de-dollarization’ to rely less on the policies of the U.S. central bank and government,” said broker SP Angel in a morning email dispatch.

According to the World Gold Council, central banks bought 399 metric tons of gold in the third quarter, compared to 186 metric tons in the first quarter and 88 metric tons in the first quarter of 2022. Officially, Turkey led buying with 29 metric tons in the third quarter, though many central banks including China and Russia do not always report gold holdings. 

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are lower and trading around $77.75 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.875%.  

U.S. economic data due for release Thursday includes the weekly jobless claims report and the weekly DOE liquid energy stocks report.

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 $1,823.00 and then at this week’s high of $1,841.90. First support is seen at this week’s low of $1,804.20 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 this week’s low of $23.645 and then at $23.00. Wyckoff's Market Rating: 7.5.

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.