Gold futures remain above $1800 as spot gold still attempts to breach that key level
As of 4:55 PM EST gold futures basis, the most active February 2023 contract is fixed at $1805.90 after factoring in a net gain of $10.80. Spot gold gained $6.00 and is currently fixed at $1798.51. Silver gained 1.37% or $0.32 with the most active March 2023 futures contract currently fixed at $23.935. A golden cross was identified today with silver’s short-term 50-day moving average crossing above its 200-day moving average.
Gains in the precious metals were fractionally driven by dollar weakness but the majority of today’s gains were the result of buying by market participants. The US dollar declined by 0.10 % with the dollar index currently fixed at 104.025.
According to the KGX (Kitco Gold Index) at 5:00 PM EST spot gold was fixed at $1798.60 after factoring in a net gain of $6.40. A gain of $5.50 was attributed to normal trading and the remaining gain of $0.90 was the result of dollar weakness.
Our technical studies indicate that the support levels for gold futures are at $1792 which corresponds to the longest-term moving average used by market technicians, the 200-day MA. Major support occurs just below that at $1784.80 which is based upon the 23.6% Fibonacci retracement. The data set used to create the retracement begins at $1618 and concludes at $1837 which is the highest value gold has traded to since August.
This weekend marks the beginning of the year-end holiday season. All cultures celebrate the beginning of a new year, although not on the same date, however, this year is special. It is special because every person alive has been greatly impacted (some much, much more than others) by the same event which began in 2020.
This is why this year-end holiday season is a time we all should be thankful for. Hopefully, this year-end holiday season will mark the beginning of a new era, an era defined as a time of rebuilding, rather than a time of hardship.
By Gary Wagner
Contributing to kitco.com
David