Gold, silver up a bit on mild safe-haven demand, technical buying
Gold and silver prices are slightly higher in midday U.S. trading Wednesday, with silver scoring an eight-month high. Both markets are pausing after posting solid gains Tuesday, amid wobbly global stock and financial markets that prompted some safe-haven demand for the metals, especially on Tuesday. Chart-based buying was also featured in the two precious metals market today. Rising bond yields this week are a bearish element for gold and silver. February gold was last up $2.40 at $1,827.80 and March silver was up $0.014 at $24.285.
The marketplace Wednesday has mostly digested the Bank of Japan move Tuesday to tighten its monetary policy by raising the cap for the interest rate on its 10-year bond by 0.25 percent. The Japanese yen surged against the U.S. dollar. Global bond and stock markets were rattled on the news because Japan is a big player in global bond markets. Japanese citizens are big savers and put much of their money into global stocks and bonds. With the higher domestic bond yield cap, Japanese citizens and companies may opt to keep more of their money at home. Speculators worldwide had for years been putting on a yen-based "carry trade" that has suddenly become very shaky. With world financial markets so highly intertwined, all of the above at least temporarily spooked the global marketplace. Some Fed watchers are saying the BOJ move underscores the notion that global inflation remains problematic and that the Fed won't be able to do any pivot on its hawkish monetary policy in 2023.
Global stock markets were mixed overnight. U.S. stock indexes higher at midday. Trading volumes are likely to wane ahead of the Christmas holiday over the weekend and as a massive winter storm pounds much of the U.S. and is heading for the east coast.
Copper prices to find their groove in the second half of 2023
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are solidly up and trading around $78.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.694%.
Technically, February gold futures bulls have the firm overall near-term technical advantage. A six-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 December high of $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at today's high of $1,833.80 and then at the December high of $1,836.90. First support is seen at $1,820.00 and then at $1,800.00. Wyckoff's Market Rating: 7.0Live 24 hours silver chart [
March silver futures prices hit an eight-month-high today. The silver bulls have the solid overall near-term technical advantage. Prices are in a choppy 3.5-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 the December low of $22.19. First resistance is seen at today's high of $24.525 and then at $25.00. Next support is seen at $24.00 and then at $23.50. Wyckoff's Market Rating: 7.5.
March N.Y. copper closed up 140 points at 381.35 cents today. Prices closed near mid-range today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 354.70 cents. First resistance is seen at 386.75 cents and then at the December high of 392.90 cents. First support is seen at this week's low of 372.30 cents and then at 370.00 cents. Wyckoff's Market Rating: 5.5.
By Jim Wyckoff
For Kitco News
David – http://markethive.com/david-ogden