Solid price gains for gold, silver on chart-based buying

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 and silver bulls are out of the gate strong for 2023, with gold notching a six-month high and silver an eight-month peak. Bullish price charts are prompting the technical-based traders to jump on the long sides of the two markets. Especially impressive today is that gold and silver are posting good advances right smack in the face of a very strong U.S. dollar index to start the trading week. February gold was last up $18.90 at $1,844.70 and March silver was up $0.42 at $24.46.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. The stock indexes begin the new year with some optimism after the S&P 500 stock index in 2022 suffered its worst year since 2008.  

Inflation worries, central bank monetary policies and the Russia-Ukraine war are likely to remain near the front burner of the marketplace in 2023.

The key outside markets today see the U.S. dollar index sharply higher on a corrective bounce. USDX prices are still not far above the recent for-the-move low. Nymex crude oil prices are lower and trading around $79.50 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.761%.  

U.S. economic data due for release Tuesday is light and includes construction spending.

Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in a two-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 $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 $1,850.00 and then at today’s high of $1,856.60. First support is seen at the overnight low of $1,831.30 and then at $1,820.00. Wyckoff's Market Rating: 7.5

The silver bulls have the solid overall near-term technical advantage. A choppy, four-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 $23.00. First resistance is seen at today’s high of $24.775 and then at $25.00. Next support is seen at today’s low of $24.095 and then at $24.00. Wyckoff's Market Rating: 7.5.