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Gold sees normal price pause after recent gains

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 slightly lower in early U.S. trading Friday, with silver showing moderate losses. The gold market is pausing after recent gains that pushed prices to a nine-month high on Thursday. The gold market bulls remain firmly in the driver’s seat. February gold was last down $0.80 at $1,929.40 and March silver was down $0.185 at $23.835.

Global stock markets were mostly higher overnight in quieter overnight trading. U.S. stock indexes are pointed toward weaker 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 U.S. data point of the day Friday is the personal income and outlays report, which contains the personal consumption expenditures (PCE) price inflation indexes that the Federal Reserve is said to watch very closely.

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The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures prices are higher and trading around $82.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.561%.   

U.S. economic data due for release Friday includes personal income and outlays, pending home sales 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 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 this week’s high of $1,949.80 and then at $1,962.50. First support is seen at Thursday’s low of $1,918.40 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 overall near-term technical advantage. However, trading has been sideways and choppy recently. 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 $24.12 and then at this week’s high of $24.415. Next support is seen at $23.50 and then at $23.26. Wyckoff's Market Rating: 6.0.

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.