Gold weaker on profit taking, higher USDX and rising bond yields
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 solidly down in midday U.S. trading Thursday, pressured by some better-than-expected U.S. economic data released this morning that falls into the camp of the monetary policy hawks. More routine profit-taking pressure was featured in the futures market following recent gains that saw gold prices poke to a nine-month high overnight. A higher U.S. dollar index and rising U.S. Treasury yields were bearish outside market forces for the precious metals markets on this day. February gold was last down $16.70 at $1,926.00 and March silver was up $0.124 at $24.07.
The U.S. data point of the day Thursday was 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 today has also been upbeat. Gold prices dipped farther on the news after seeing some selling pressure overnight.
Global stock markets were mostly higher overnight. U.S. stock indexes are mixed at midday. The U.S. stock indexes are enjoying near-term price uptrends on the daily charts, to suggest further gains in the short term.
|Gold to be hardest hit commodity in 'massive crash', bear market in early stages - Harry Dent|
The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are higher and trading around $81.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.511%, and up a bit following the upbeat U.S. economic data today.
Technically, February gold futures bulls still have the solid overall near-term technical advantage. A 2.5-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close 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 this week’s low of $1,912.50 and then at $1,900.00. Wyckoff's Market Rating: 8.0
March silver futures saw short covering was featured after prices hit a five-week low Monday. The silver bulls have the overall near-term technical advantage. However, trading has been choppy and sideways for weeks. Silver bulls' next upside price objective is closing 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 $24.415 and then at $24.775. Next support is seen at today’s low of $23.69 and then at Wednesday’s low of $23.44. Wyckoff's Market Rating: 6.5.
March N.Y. copper closed up 140 points at 425.90 cents today. Prices closed nearer the session high today. The copper bulls have the solid overall near-term technical advantage. A 3.5-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 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at this week’s high of 430.25 cents and then at the January high of 435.50 cents. First support is seen at this week’s low of 421.10 cents and then at 416.80 cents. Wyckoff's Market Rating: 7.5.