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Solid price gains for gold, silver on chart-based buying

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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 bulls are out of the gate strong for 2023, with gold notching a six-month high and silver an eight-month peak. Bullish price charts are prompting the technical-based traders to jump on the long sides of the two markets. Especially impressive today is that gold and silver are posting good advances right smack in the face of a very strong U.S. dollar index to start the trading week. February gold was last up $18.90 at $1,844.70 and March silver was up $0.42 at $24.46.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. The stock indexes begin the new year with some optimism after the S&P 500 stock index in 2022 suffered its worst year since 2008.  

Inflation worries, central bank monetary policies and the Russia-Ukraine war are likely to remain near the front burner of the marketplace in 2023.

The key outside markets today see the U.S. dollar index sharply higher on a corrective bounce. USDX prices are still not far above the recent for-the-move low. Nymex crude oil prices are lower and trading around $79.50 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.761%.  

Retail investors see silver prices rallying more than 50% in 2023 to $38 an ounce

U.S. economic data due for release Tuesday is light and includes construction spending.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in a two-month-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 $1,850.00 and then at today’s high of $1,856.60. First support is seen at the overnight low of $1,831.30 and then at $1,820.00. Wyckoff's Market Rating: 7.5

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 $23.00. First resistance is seen at today’s high of $24.775 and then at $25.00. Next support is seen at today’s low of $24.095 and then at $24.00. 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.