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Gold sees price pause; more upside likely

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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 prices are near steady in early U.S. trading Monday, on a pause after hitting an eight-month high late last week. The yellow metal remains in a solidly bullish technical posture, to suggest still more price upside in the near term. The gold bulls are starting to discuss a new record high being set this year. The present all-time high in Comex gold futures is $2,078.80 per ounce, scored in March of 2022. February gold was last down $0.20 at $1,928.00 and March silver was down $0.105 at $23.83.

Global stock markets were mixed but mostly up overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.

In overnight news, a Wall Street Journal headline reads, "Fed sets milder course on rate increases." Reporter Nick Timiraos said Fed officials are to slow interest rate increases at upcoming FOMC meetings and debate how much higher to raise them after gaining more confidence inflation will ease further this year. Timiraos is said to have an inside edge on getting high-level Fed officials to speak directly with him.

Gold price eyes $1,950 but it might have to wait until the Fed meeting before moving on to $2,000 - analysts

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil futures prices are modestly higher and trading around $82.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.504%.   

U.S. economic data due for release Monday is light and includes the leading economic indicators report.

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 last week's high of $1,939.00 and then at $1,950.00. First support is seen at $1,900.00 and then at last week's low of $1,898.60. 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 four 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 the overnight high of $24.295 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.

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.