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Gold sees normal price pause after recent good gains

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 near steady in early U.S. trading Friday, on some routine price consolidation and backing and filling on the charts after recent strength that saw prices hit an eight-month high overnight. Silver is weaker and remains trapped in a sideways grind, but the bulls still have the firm technical advantage. February gold was last up $0.10 at $1,899.30 and March silver was down $0.339 at $23.665.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly weaker openings when the New York day session begins. The U.S. stock index bulls have had a good week as the S&P and Nasdaq hit four-week highs on Thursday. Trader and investor attitudes are more positive, following a U.S. consumer price index report Thursday that showed inflation continuing to recede.

In overnight news, the Euro zone got some upbeat economic news when the bloc’s November industrial output was reported up 2.0%, year-on-year, which is well above market expectations.

China got some downbeat economic data Friday, as its December exports fell 9.9% and imports were down 7.5%, year-on-year. However, those numbers were a bit better than market expectations.

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

The key outside markets today see the U.S. dollar index modestly higher. Nymex crude oil futures prices are slightly higher and trading around $78.50 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching around 3.5%.  

U.S. economic data due for release Friday includes import and export prices and the University of Michigan consumer sentiment 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 $1,950.00. 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 $1,912.90 and then at $1,925.00. First support is seen at $1,885.00 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 $24.33 and then at the January high of $24.775. Next support is seen at $23.50 and then at the January 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.