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Gold, silver pressured by higher USDX, stronger 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 sharply lower in midday U.S. trading Thursday, on downside price corrections after recent gains that saw the gold market hit a six-month high this week and silver an eight-month peak. A strong rally in the U.S. dollar index and U.S. Treasury yields creeping a bit higher were also daily negatives for the precious metals markets. February gold was last down $23.50 at $1,835.50 and March silver was down $0.684 at $23.28.

The U.S. ADP national employment report, out this morning, came in at up 235,000 jobs in December, compared to the consensus forecast of up 153,000. The gold market saw prices downtick more following the stronger-than-expected data, which also helped to rally the U.S. dollar index and push U.S. Treasury yields up. The yield on the benchmark U.S. 10-year Treasury note is presently around 3.724%. 

Traders and investors are now focusing on Friday morning’s U.S. December employment situation report from the Labor Department. The key non-farm payrolls number is expected to come in at up 200,000, following a rise of 263,000 in the November report.


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Global stock markets were mixed overnight. U.S. stock indexes are lower at midday. Risk appetite is not keen this week due to worries about a global economic slowdown in 2023. In the coming weeks, keep a closer eye on the crude oil market, as its price trajectory will give the marketplace a very good reading on the global economic growth prospects in 2023. Nymex crude oil prices are higher today and trading around $74.25 a barrel. However, oil’s price drop the first two trading days of the new year was the steepest, percentage-wise, in over 30 years--suggesting dour prospects for any robust world economic growth this year.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures saw profit taking and a corrective pullback featured after prices hit a six-month high Wednesday. Bulls still have the solid overall near-term technical advantage. A two-month-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 $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,782.00. First resistance is seen at $1,850.00 and then at today’s high of $1,864.30. First support is seen at today’s low of $1,829.90 and then at $1,820.00. Wyckoff's Market Rating: 7.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures saw profit taking was seen after prices hit an eight-month high Tuesday. The silver bulls still have the firm overall near-term technical advantage but have faded late this week. Prices are still in a four-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 $22.00. First resistance is seen at $24.00 and then at $24.50. Next support is seen at $23.00 and then at $22.735. Wyckoff's Market Rating: 7.0.

March N.Y. copper closed up 665 points at 380.65 cents today. Prices closed nearer the session high today. The copper bulls and bears are on a level overall near-term technical playing field. A three-month-old uptrend on the daily bar chart has been negated. 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 383.50 cents and then at this week’s high of 387.15 cents. First support is seen at this week’s low of 370.85 cents and then at 365.00 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.