February 6, 2023


At midday Tuesday, Kitco News reported that gold and silver prices were on the rise due to a speech from Federal Reserve Chairman Jerome Powell that did not contain any unexpected moves regarding U.S. monetary policy. April gold is currently trading at $1,894.00, a $14.20 increase, and March silver is at $22.41, a rise of $0.173.

At the center of the marketplace's attention today was Powell's speech to an economics club in Washington, D.C. He restated the fact that inflation in the US has begun to decrease, but still needs to progress further to reach the Fed's desired level. Inquiries were made concerning whether the strong jobs report from Friday would lead to a more aggressive Fed policy, to which Powell denied. The market's initial assessment was that Powell did not make any hawkish declarations. Investors and traders were especially anxious to hear what Powell had to say after the unexpected positive U.S. jobs report, which many still think might cause the Fed to keep a hawkish position on U.S. monetary policy for an extended time.

The effects of the overnight performances in world stock markets were varied. U.S. indexes surged to peak levels as Powell began to address the audience.

A new study has revealed that the number of people who are using renewable energy sources is increasing significantly. It has been observed that over the past few years, there has been a marked rise in the utilization of these energy sources. Many individuals are now recognizing the environmental and economic benefits of making the switch to renewable energy sources. This shift is likely to have a long-term positive impact on the environment.

The U.S. dollar index is close to its daily low following the comments of Powell. The 10-year Treasury note yields 3.601%. Furthermore, Nymex crude oil futures are trading above $77.00 a barrel.

A 24-hour gold chart is available via Kitco Inc and can be accessed here. A graphical representation is provided below:

Monday saw April gold futures prices reach a four-week low, followed by short covering today. Bulls still have the technical advantage in the near-term. However, the uptrend on the daily bar chart has been nullified, suggesting a market top is in place. If bulls can close above $1,975.20, their next objective will be met. Conversely, if bears can push prices below $1,850.00, they will have met their goal. $1,900.00 is the first resistance level, while $1,873.20 is the initial support. Wyckoff's Market Rating is 6.5.

At the start of today, March silver futures had dropped to their lowest point in two months. The silver bulls have the edge in the short-term, however, they must demonstrate further strength soon in order to maintain it. The bearish break out from the sideways trading pattern at higher levels is a sign of a decline. The bulls' aim is to close prices above $23.50, while the bears seek to close prices below $21.00. The initial resistance is located at this week's peak of $22.635, followed by $23.00. The initial support is at today's low of $22.125 and then $22.00. Wyckoff's Market Rating is 5.5.

The copper market in New York closed at 406.10 cents today, which was an increase of 275 points from the prior close. Despite the rise, the bulls have been weakening and the four-month uptrend on the daily chart has been nullified. The objective for the bulls is to move past the January high of 435.50 cents, while the bears would need to close prices below 380.00 cents to achieve their goal. The resistance is seen at 410.00 cents and 420.00 cents, while the support is at 399.30 cents and 390.00 cents. According to Wyckoff's Market Rating, the market is at 6.5.

Editor's Note: Market analysis and spot gold pricing charts courtesy of Kitco's Jim Wyckoff.