Make Kitco Your Homepage

Price gains in gold, silver on short covering, friendly outside mkts

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Gold and silver prices are higher in early U.S. trading Friday, on short covering in the futures markets following recent selling pressure, and amid support from a lower U.S. dollar index and a dip in U.S. Treasury yields on this day. April gold was last up $11.60 at $1,851.90 and May silver was up $0.274 at $21.17.

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The U.S. stock indexes are in fledgling price downtrends on the daily bar charts.

The general marketplace lately has been dealing with the realization that problematic global inflation is likely to hang around longer than traders and investors initially expected, or hoped. That notion has sapped trader and investor risk appetite recently. A Wall Street Journal headline today reads: “The world economy is doing well; this is bad news for central bankers.”

In overnight news, China’s central bank governor has signaled the bank will ease its monetary policy by cutting banks’ reserve requirement ratio, in order to support the Chinese economy.

Meantime, the Euro zone got some mixed inflation news as its producer price index fell 2.8% in January but was up 15.0%, year-on-year. Those numbers were less hot than expected.

The key outside markets this morning see the U.S. dollar index weaker. Nymex crude oil futures prices are slightly down and trading around $78.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 4.007%.

U.S. economic data due for release Friday includes the U.S. services purchasing managers index (PMI), the ISM report on business services, and the global services PMI.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls and bears are back on a level overall near-term technical playing field. A downtrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at last week’s high of $1,856.40 and then at $1,870.00. First support is seen at the overnight low of $1,842.00 and then at $1,825.00. Wyckoff's Market Rating: 5.0.

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. Prices are in a steep downtrend on the daily bar chart. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $22.25. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $21.285 and then at $21.52. Next support is seen at Thursday’s low of $20.76 and then at this week’s low of $20.505. Wyckoff's Market Rating: 4.0.

Central banks continue to scoop up gold in 2023 as gold price holds the mid-$1,800 level

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.