(Kitco News) - Gold prices near steady in early U.S. trading Wednesday, while silver prices are a bit weaker but hit an eight-month high overnight. Both markets are pausing after posting solid gains Tuesday, amid wobbly global stock and financial markets that are prompting some safe-haven demand for the metals. Rising bond yields this week are a negative for the precious metals. February gold was last down $0.70 at $1,824.70 and March silver was down $0.141 at $24.13.
The marketplace is still digesting the Bank of Japan move Tuesday to tighten its monetary policy by raising the cap for the interest rate on its 10-year bond by 0.25%. The Japanese yen surged against the U.S. dollar. Global bond and stock markets were rattled on the news because Japan is a big player in global bond markets. Japanese citizens are big savers and put much of their money into global stocks and bonds. With the higher domestic bond yield cap, Japanese citizens and companies may opt to keep more of their money at home. Speculators worldwide had for years been putting on a yen-based "carry trade" that has suddenly become very shaky. With world financial markets so highly intertwined, all of the above at least temporarily spooked the global marketplace. Some Fed watchers are saying the BOJ move underscores the notion that global inflation remains problematic and that the Fed won't be able to do any pivot on its hawkish monetary policy in 2023.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Trading volumes are likely to wane ahead of the Christmas holiday over the weekend and as a massive winter storm pounds much of the U.S. and is heading for the east coast.
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The key outside markets today see the U.S. dollar index slightly firmer. Nymex crude oil prices are up and trading around $77.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.681%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, existing home sales, the consumer confidence index and the weekly DOE liquid energy stocks report.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls have the firm overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close in February futures above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at this week's high of $1,832.40 and then at the December high of $1,836.90. First support is seen at $1,820.00 and then at $1,800.00. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the firm overall near-term technical advantage. A choppy, three-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $25.00. 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 $24.525 and then at $25.00. Next support is seen at $24.00 and then at $23.50. Wyckoff's Market Rating: 7.5.
