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Gold price weaker in wake of upbeat U.S. economic data

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(Kitco News) - Gold prices are moderately down in early U.S. trading Thursday, following some better-than-expected U.S. economic data that falls into the camp of the monetary policy hawks. More routine profit-taking pressure is featured following recent gains that saw gold prices poke to a nine-month high overnight. February gold was last down $7.50 at $1,935.30 and March silver was up $0.059 at $24.00.

The U.S. data point of the day Thursday is the advance estimate for fourth-quarter gross domestic product. GDP in 1Q came in at up 2.9%, which was slightly above market expectations for a rise of 2.8%, year-on-year, and compares to a 3.2% rise in the third quarter. Other U.S. data released so far today has also been upbeat. Gold prices dipped a bit farther on the news after seeing some selling pressure overnight.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The U.S. stock indexes are enjoying near-term price uptrends on the daily charts, to suggest further gains in the short term.  

The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil futures prices are a bit firmer and trading around $80.75 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.509%, and up a bit following the upbeat U.S. economic data.   

Gold to be hardest hit commodity in 'massive crash', bear market in early stages - Harry Dent

It’s a busy day for U.S. economic data releases Thursday, including the weekly jobless claims report, the Chicago Fed national activity index, the advance estimate for four-quarter gross domestic product, the advance economic indicators report, the Kansas City Fed manufacturing survey, and durable goods orders, and new residential 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 $1,885.00. First resistance is seen at today’s high of $1,949.80 and then at $1,962.50. First support is seen at Wednesday’s low of $1,920.60 and then at this week’s low of $1,912.50. Wyckoff's Market Rating: 8.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the slight overall near-term technical advantage. However, trading has been sideways and choppy and a price uptrend on the daily chart has been negated. 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 today’s high of $24.095 and then at this week’s high of $24.295. Next support is seen at $23.50 and then at $23.26. Wyckoff's Market Rating: 5.5.

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.