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The price of gold goes back 6 months. high on buying safe havens


Welcome to Kitco News’ 2023 Insights series. Uncertainty continues to dominate financial markets as central bank monetary policies push the global economy into a recession to calm 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 prices are higher again on Wednesday as gold rose sharply and hit a new six-month high. Silver marked an eight-month high on Tuesday. Safe-haven demand is in the spotlight this first week of trading in 2023, amid wobbly global equity markets. Bullish technical postures for gold and silver are also prompting chart-based buying. February gold was last up $21.70 at $1,867.80 and March silver was up $0.219 at $24.48.

Global equity markets were mostly firmer overnight. US stock indices are pointing to slightly higher openings at the start of the day’s session in New York. Still, there is heightened anxiety in the market this first week of the new year. The potential slowdown in economic growth in major industrialized nations as well as problematic price inflation in 2023 is keeping traders pensive and driving safe haven demand for precious metals.

A sign of market anxiety was seen on Tuesday, when gold prices posted solid gains despite a strong rally in the US dollar index. Over the past several months, the USDX and gold prices have traded daily in a strong inverse relationship. The gold market’s rally this week comes amid shaky global stock markets and concerns over rising Covid infections in China that continue to cripple the world’s second-largest economy.

Major overseas markets are seeing the US dollar index drop today. Nymex Crude Oil prices are solidly lower and trading around $75.00 a barrel. Meanwhile, the yield on the benchmark 10-year US Treasury is currently at 3.681%.

Traders and investors are starting to focus on the December US jobs report released by the Department of Labor on Friday. The key figure for nonfarm payrolls is expected to reach 200,000, following an increase of 263,000 in the November report.

U.S. economic data due out Wednesday includes the MBA mortgage applications survey, the Johnson Redbook weekly retail sales report, the ISM business manufacturing report, domestic auto industry sales and the minutes of the last FOMC meeting.

24 hour live gold chart [Kitco Inc.]

Technically, gold futures bulls have the strong overall short-term technical advantage. Prices are in a two-month uptrend on the daily bar chart. The next upside price target for the Bulls is to produce a February futures close above the strong resistance at $1,900.00. Bears next short-term downside price objective is to push futures prices below strong technical support at $1,775.00. First resistance is seen at today’s high of $1,871.30 and then at $1,900.00. First support is seen at $1,850.00 and then at the overnight low of $1,842.00. Wyckoff Market Rating: 8.0

24 hour live money chart [ Kitco Inc. ]

Silver bulls have the strong overall short-term technical advantage. A choppy four-month uptrend is in place on the daily bar chart. The next upside price objective for silver bulls is to close March futures prices above strong technical resistance at $25.00. The next downside price objective for the bears is to close prices below the strong support at $23.00. First resistance is seen at this week’s high at $24.775 and then at $25.00. Next support is seen at this week’s low at $24.095 and then at $24.00. Wyckoff Market Rating: 7.5.

Disclaimer: The opinions 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 the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.




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