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Gold price powers to 9-mo. high on safe-haven demand, bullish charts

Jim Wyckoff

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 modestly higher and scored a nine-month high in early U.S. trading Friday, amid a solidly bullish technical posture and some mild safe-haven demand. The yellow metal bulls are at least quietly starting to discuss a new record high. The present all-time peak in Comex gold futures is $2,078.80 per ounce, scored in March of 2022. February gold was last up $6.50 at $1,930.60 and March silver was up $0.225 at $24.10.

Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward slightly firmer openings when the New York day session begins. Trader and investor risk appetite is not as robust as that seen the first half of January. That's prompting just a bit of safe-haven buying in gold and silver.

The marketplace is so far not being impacted significantly by the U.S. Congress and its debt ceiling standoff. Read a Barron's story today: "Congress is playing with the fire of U.S. government bonds, the bedrock of the global financial system. If lawmakers put dynamite in that foundation by allowing the U.S. to default on interest payments, it will likely cause an earthquake.” This situation may also be prompting safe-haven demand for gold and silver.

 Further weakness in the U.S. dollar will drive gold prices higher - VanEck

The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are modestly higher and trading around $80.75 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.44%.   

U.S. economic data due for release Friday includes is light and includes existing home sales.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in a 2.5-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 $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,870.00. First resistance is seen at today's high of $1,939.00 and then at $1,950.00. First support is seen at $1,915.00 and then at $1,900.00. Wyckoff's Market Rating: 8.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the overall near-term technical advantage. However, trading has been sideways and choppy for three weeks. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at the January high of $24.775. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $24.25 and then at $24.50. Next support is seen at $23.50 and then at the January low of $23.26. Wyckoff's Market Rating: 6.5.

By Jim Wyckoff

For Kitco News

Contact jwyckoff@kitco.com
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.