(Kitco News) – Gold and silver prices are near steady levels in midday U.S. trading Thursday, following a big batch of U.S. economic data highlighted by a GDP report that showed a steadily growing economy. February gold did hit a five-week low today. February gold was last down $1.50 at $2,014.30. March silver was last down $0.039 at $22.85.
In the last quarter of 2023, the U.S. economy expanded at an annualized rate of 3.3%, surpassing market expectations of a 2% increase. This growth followed a 4.9% rate in the previous quarter (Q3), as indicated by the advance estimate. When considering the entire year of 2023, the U.S. economy registered a growth rate of 2.5%, a notable improvement compared to the 1.9% growth observed in 2022. These figures closely align with the Federal Reserve’s estimates of 2.6% growth for the year 2023.
Of note, U.S. Treasury Secretary Janet Yellen is in Chicago today, where she’s scheduled to deliver what the administration is calling a “major” address on the economy and President Joe Biden’s domestic agenda. “Though some forecasters thought a recession last year was inevitable, President Biden and I did not,” Yellen will say in prepared remarks. “Instead of contracting, the economy has continued to grow, driven by American workers and President Biden’s economic strategy. It now produces far more goods and services than it did before the pandemic.”
Meantime, the European Central Bank (ECB) decided to maintain its key interest rates at their multi-year highs for the third consecutive meeting in January. This decision aligns with market forecasts. The ECB cited the ongoing decline in underlying inflation and the continued strong impact of previous interest rate hikes on financing conditions as reasons for this decision.
The S&P 500 and Nasdaq stock index futures are higher and near this week’s record highs at midday. Risk appetite in the general marketplace has up-ticked recently. Rallying stocks are a negative for the precious metals markets, as equities are a competing asset class.
Part of the better risk appetite is due to China easing its monetary policy this week. Wednesday’s surprise 50 basis point reserve requirement ratio cut for banks in China “has seen buyers step into an illiquid market on expectations of a revival in construction activity,” said broker SP Angel today.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are higher and trading around $76.50 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching around 4.15%.
Technically, February gold futures prices hit a five-week low today. The bulls have the overall near-term technical advantage but have faded recently. A three-month-old uptrend on the daily bar chart has been negated and prices are now trending down. Bulls’ next upside price objective is to produce a close above solid resistance at $2,050.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at today’s high of $2,025.60 and then at this week’s high of $2,039.30. First support is seen at today’s low of $2,004.00 and then at $2,000.00. Wyckoff’s Market Rating: 6.0.
March silver futures bears have the firm overall near-term technical advantage. A six-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at today’s high of $23.155 and then at $23.50. Next support is seen at Wednesday’s low of $22.465 and then at $22.00. Wyckoff’s Market Rating: 3.5.
March N.Y. copper closed down 95 points at 387.65 cents today. Prices closed near mid-range and hit a three-week high today. The copper bulls have regained the slight overall near-term technical advantage. A price downtrend on the daily bar chart has been negated. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the December high of 397.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 371.45 cents. First resistance is seen at today’s high of 389.35 cents and then at 393.30 cents. First support is seen at 383.00 cents and then at 380.00 cents. Wyckoff’s Market Rating: 5.5.
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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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