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Gold price sharply higher following as-expected U.S. CPI print

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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 posting good gains in early U.S. trading Thursday, following a key U.S. inflation report that came in right in line with market expectations but is still considered tamer. Gold prices pushed above $1,900.00 and hit a seven-month high. February gold was last up $18.20 at $1,896.50 and March silver was up $0.604 at $24.075.

This morning’s highly anticipated U.S. consumer price index report for December came in at up 6.5% year-on-year, which was right in line with market expectations. A 7.1% annual rise was reported in the November report. Other internal numbers in today’s CPI report were also in line with market expectations. This report falls slightly into the camp of the U.S. monetary policy doves, as the report suggests U.S. inflation has peaked.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward slightly weaker openings when the New York day session begins. The key outside markets today see the U.S. dollar index modestly lower. Nymex crude oil futures prices are higher and trading around $78.50 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.5%--down a bit following the CPI report.  

Gold will hit new highs in 2023, but the stock market will suffer for years - Peter Grandich

Other U.S. economic data due for release Thursday includes the weekly jobless claims report, real earnings and the monthly Treasury budget statement.

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 $1,902.90 and then at $1,910.60. First support is seen at the overnight low of $1,878.20 and then at this week’s low of $1,869.30. 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 on the daily bar chart has stalled out. 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 this week’s high of $24.285 and then at the January high of $24.775. Next support is seen at the January low of $23.26 and then at $23.00. 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.