Gold and silver prices are up at midday, but down from earlier levels that saw gold notch a six-month high and silver an eight-month peak. Safe-haven demand is featured to start the new year, along with technical buying amid bullish charts. Risk aversion is keener early this week as global stock markets remain wobbly amid concerns about weakening economic growth in 2023 for major industrialized countries. February gold was last up $17.50 at $1,843.70 and March silver was up $0.185 at $24.225.
Global stock markets were mixed overnight. U.S. stock indexes are lower at midday. After setting a new intra-day record high on Jan. 3, 2022, the S&P 500 stock index proceeded to lose ground the rest of that year and lost 19%–the worst year since 2008. Analysts at some major banks are forecasting the stock indexes will retest their 2022 lows in the first half of 2023. Higher U.S. Treasury yields (which compete with stock dividends), still-hawkish monetary policies from most of the world”s major central banks (higher interest rates), worries about economic growth in China, the U.S. and European Union, and the grinding Russia-Ukraine war are all formidable hurdles the stock market bulls are still facing this year. Some long-time market watchers say higher interest rates are just beginning to pervade global stock markets. Most of the above lean in favor of the safe-haven metals bulls.
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 sharply lower and trading around $77.75 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.782%.
Technically,February gold futures prices hit a six-month high early on today. Bulls have the solid overall near-term technical advantage. A two-month-old uptrend is in place on the daily bar chart. Bulls” next upside price objective is to produce a close above solid resistance at the $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,782.00. First resistance is seen at $1,850.00 and then at today”s high of $1,856.60. First support is seen at today”s low of $1,831.30 and then at $1,820.00. Wyckoff’s Market Rating: 7.5
March silver futures prices hit an eight-month high early on today. The silver bulls have the solid overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.735. First resistance is seen at today”s high of $24.775 and then at $25.00. Next support is seen at $24.00 and then at last week”s low of $23.645. Wyckoff’s Market Rating: 7.5.
March N.Y. copper closed down 375 points at 377.25 cents today. Prices closed near the session low and scored a bearish “outside day” down. The copper bulls have the slight overall near-term technical advantage. A three-month-old uptrend on the daily bar chart has stalled out. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the November high of 394.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 370.00 cents. First resistance is seen at today”s high of 387.15 cents and then at 394.70 cents. First support is seen at 375.00 cents and then at the December low of 372.30 cents. Wyckoff’s Market Rating: 5.5.
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