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Gold and silver prices are higher in midday trading Thursday, supported by a sell-off in the U.S. dollar index on this day. Bullish near-term chart postures for both metals continue to invite the technically based speculators to the long sides. February gold was last up $7.10 at $1,823.10 and March silver was up $0.36 at $24.20.
Global stock markets were flat to weaker overnight. U.S. stock indexes are solidly higher at midday. The marketplace has been quieter this week following the Christmas holiday and just ahead of the new year. There has also been a dearth of major fundamental news and economic data this week.
The World Gold Council reports central bank gold buying at the highest rate since 1967, with Russia and China likely the leaders. “Sanctions on Russia and strained relations between the West and China have led to both countries adopting a policy of ‘de-dollarization’ to rely less on the policies of the U.S. central bank and government,” said broker SP Angel in a morning email dispatch. According to the World Gold Council, central banks bought 399 metric tons of gold in the third quarter, compared to 186 metric tons in the first quarter and 88 metric tons in the first quarter of 2022. Officially, Turkey led buying with 29 metric tons in the third quarter, though many central banks including China and Russia do not always report gold holdings.
The other key outside market today sees Nymex crude oil prices lower and trading around $78.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.83%.
Technically, February gold futures 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 $1,825.00 and then at this week’s high of $1,841.90. First support is seen at today’s low of $1,811.20 and then at $1,800.00. Wyckoff's Market Rating: 7.0.
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March silver futures 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 the December high of $24.525 and then at $24.80. Next support is seen at $24.00 and then at this week’s low of $23.645. Wyckoff's Market Rating: 7.5.
March N.Y. copper closed down 140 points at 382.85 cents today. Prices closed near mid-range. 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 Wednesday’s high of 387.30 cents and then at 394.70 cents. First support is seen at 380.00 cents and then at 375.00 cents. Wyckoff's Market Rating: 6.0.
By Jim Wyckoff
For Kitco News
