1/19/23 Gold price firmer on chart-based buying interest

  1/19/23 Gold price firmer on chart-based buying interest (1)

Jim Wyckoff Thursday January 19, 2023 08:42

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 prices are modestly higher in early U.S. trading Thursday, as the technical traders continue to flow to the long side of the market due to bullish charts. Silver prices are weaker as the bulls have faded a bit recently. February gold was last up $5.00 at $1,912.00 and March silver was down $0.247 at $23.40.

Global stock markets were mixed but mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The U.S. stock index bulls were derailed Wednesday when U.S. retail sales data came in weaker than expected, which revived notions the U.S. economy could slip into recession in 2023.  

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil futures prices are slightly lower and trading around $78.75 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.388%. U.S. Treasury yields have dropped in the wake of a tamer U.S. producer price index report on Wednesday and the weaker U.S. retail sales report.  

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, new residential construction, and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in a nine-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 $1,950.00. 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 $1,918.40 and then at this week’s high of $1,931.80. First support is seen at $1,900.00 and then at $1,885.00. Wyckoff's Market Rating: 8.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the overall near-term technical advantage. A choppy, four-month-old uptrend on the daily bar chart has stalled out. 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 the overnight high of $23.69 and then at $24.00. Next support is seen at the January low of $23.26 and then at $23.00. Wyckoff's Market Rating: 6.5.

By Jim Wyckoff

For Kitco News

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