Gold price powers to 9-mo. high on safe-haven demand, bullish charts

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(Kitco News) - Gold prices are modestly higher and scored a nine-month high in early U.S. trading Friday, amid a solidly bullish technical posture and some mild safe-haven demand. The yellow metal bulls are at least quietly starting to discuss a new record high. The present all-time peak in Comex gold futures is $2,078.80 per ounce, scored in March of 2022. February gold was last up $6.50 at $1,930.60 and March silver was up $0.225 at $24.10.

Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward slightly firmer openings when the New York day session begins. Trader and investor risk appetite is not as robust as that seen the first half of January. That's prompting just a bit of safe-haven buying in gold and silver.

The marketplace is so far not being impacted significantly by the U.S. Congress and its debt ceiling standoff. Read a Barron's story today: "Congress is playing with the fire of U.S. government bonds, the bedrock of the global financial system. If lawmakers put dynamite in that foundation by allowing the U.S. to default on interest payments, it will likely cause an earthquake.” This situation may also be prompting safe-haven demand for gold and silver.

The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are modestly higher and trading around $80.75 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.44%.   

U.S. economic data due for release Friday includes is light and includes existing home sales.

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 $1,870.00. First resistance is seen at today's high of $1,939.00 and then at $1,950.00. First support is seen at $1,915.00 and then at $1,900.00. Wyckoff's Market Rating: 8.5

The silver bulls have the overall near-term technical advantage. However, trading has been sideways and choppy for three weeks. 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 $24.25 and then at $24.50. Next support is seen at $23.50 and then at the January low of $23.26. Wyckoff's Market Rating: 6.5.