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Gold rallies to 7-mo. high amid tamer U.S. inflation 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 solidly up in midday U.S. trading Thursday, with gold notching a seven month intra-day high of $1,906.50. A key U.S. inflation report today was right in line with market expectations but still considered tamer. February gold was last up $16.20 at $1,895.30 and March silver was up $0.444 at $23.935.

The 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 the consensus forecast. 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. That"s good news for the U.S. and the global economy, while also suggesting demand for metals could uptick in 2023.


Perth Mint sees record bullion sales in 2022; U.S. Mint sees 22% drop in gold demand and 43% drop in silver

Global stock markets were mostly higher overnight. U.S. stock indexes are mixed at midday. The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil futures prices are higher and trading around $78.85 a barrel. These two “outside” markets were in a bullish daily posture for the metals today. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.497%. 

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures prices hit another seven-month high today. Bulls have the solid overall near-term technical advantage. A nine-week-old uptrend is in place on the daily bar chart. Bulls" next upside price objective is to produce a close above solid resistance at $1,925.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,830.00. First resistance is seen at today"s high of $1,906.50 and then at the June 2022 high of $1,910.60. First support is seen at $1,880.00 and then at this week"s low of $1,869.30. Wyckoff's Market Rating: 8.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls have the firm overall near-term technical advantage. However, a four-month-old uptrend on the daily bar chart has stalled out again. 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 today"s high of $24.33 and then at the January high of $24.775. Next support is seen at today"s low of $23.50 and then at the January low of $23.26. Wyckoff's Market Rating: 7.0.

March N.Y. copper closed up 90 points at 417.40 cents today. Prices closed near mid-range today and hit another 6.5-month high. The copper bulls have the solid overall near-term technical advantage. A three-month-old uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 440.00 cents. The next downside price objective for the bears is closing prices below solid technical support at this week"s low of 392.35 cents. First resistance is seen at today"s high of 421.15 cents and then at 425.00 cents. First support is seen at Wednesday"s low of 406.55 cents and then at 400.00 cents. Wyckoff's Market Rating: 8.0.

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.