Make Kitco Your Homepage

Gold price powers to 7-mo. high on bullish outside markets

Kitco News

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 prices are up and hit a fresh seven-month high in early U.S. trading Monday. Silver prices are mostly up. Solidly higher crude oil prices and a drop in the U.S. dollar index are working in favor of the precious metals market bulls to start the trading week. February gold was last up $10.20 at $1,880.10 and March silver was up $0.093 at $24.065.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Trader and investor risk appetite is keener to start the trading week, following a "Goldilocks" U.S. jobs report last Friday that hints the U.S. economy this year just may come in for a so-called soft landing, instead of going into recession, amid an aggressive monetary-policy-tightening program from the Federal Reserve. Also, spirits are upbeat as China continues to open up its borders and its economy, including opening travel between Hong Kong and mainland China. The above suggests better prospects for the global economy in 2023, which would translate into better demand for metals.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are solidly higher and trading around $76.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching around 3.597%.  

2023 could be the year of a 'Space Pearl Harbor' with vital U.S. Satellites increasingly vulnerable - Brandon Weichert

U.S. economic data due for release Monday is light and includes the Texas manufacturing survey.

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 $1,800.00. First resistance is seen at today's high of $1,885.40 and then at $1,900.00. First support is seen at today's low of $1,869.30 and then at $1,850.00. Wyckoff's Market Rating: 8.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the firm overall near-term technical advantage. A choppy, four-month-old uptrend is still 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 today's high of $24.285 last week's high of $24.775. Next support is seen at $23.55 and then at last week's low of $23.26. 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.