Gold rallies to 6-mo. high on bullish technicals, outside markets

(Kitco News) - Gold and silver prices are sharply higher in midday U.S. trading Tuesday, boosted by chart-based buying and by two key outside markets are in a daily bullish posture for the precious metals--the U.S. dollar index is weaker and crude oil prices firmer. Gold prices hit a six-month high today. February gold was last up $25.50 at $1,829.70 and March silver was up $0.395 at $24.31.

Bullish near-term charts fueled the solid gains in gold and silver today. Many bullish speculators are reckoning the bigger hedge funds will be more active on the long sides of the two precious metals markets in early 2023, and wanted to buy in before the funds do.

Global stock markets were mixed to firmer overnight. U.S. stock indexes are mixed at midday. The general marketplace is quieter following the Christmas holiday weekend that saw markets closed Monday.

China’s relaxation of its strict Covid policies remains in focus, with the marketplace wondering if the pivot by Chinese authorities will prompt faster growth in the world’s second-largest economy. Or, will the pivot prompt such a surge in Covid infections that China’s economy will be further damaged in the near term?

The yield on the benchmark U.S. 10-year Treasury note is presently 3.849%, which is higher. However, the gold and silver bulls chose to ignore that bearish outside element on this day.

Technically, February gold futures prices hit a six-month high today. Bulls have the firm overall near-term technical advantage. A seven-week-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 $1,875.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,782.00. First resistance is seen at today’s high of $1,841.90 and then at $1,850.00. First support is seen at today’s low of $1,808.00 and then at $1,800.00. Wyckoff's Market Rating: 7.0.

March silver futures prices hit an eight-month-high last week. The silver bulls have the firm 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 the December high of $24.525 and then at $25.00. Next support is seen at $24.00 and then at $23.55. Wyckoff's Market Rating: 7.0.

March N.Y. copper closed up 815 points at 389.05 cents today. Prices closed near mid-range and hit a six-week high today. The copper bulls have the overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. 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 394.70 cents and then at 400.00 cents. First support is seen at today’s low of 383.80 cents and then at 380.00 cents. Wyckoff's Market Rating: 6.0.

By Jim Wyckoff

For Kitco News

 jwyckoff@kitco.com

www.kitco.com