On Wednesday, the prices of gold and silver increased once again, with gold rapidly rising and reaching a new six-month high. On Tuesday, silver reached an eight-month high. This first trading week of 2023 is marked by the demand for safe haven assets amid shaky global equity markets. Chart-based purchasing is also being sparked by gold and silver’s bullish technical positions. Silver was up $0.219 at $24.48 while February gold was last up $21.70 at $1,867.80.
Overnight, most stock markets across the world were stronger. When the New York day session starts, U.S. market indices are pointing for slightly higher beginnings. Even still, the market is experiencing more apprehension in this first week of the new year. The major developed nations’ economies’ potential slowing growth and 2023’s impending price inflation are making traders uneasy and driving demand for safe haven assets like precious metals.
A sign of market unease appeared on Tuesday, when gold prices achieved significant increases despite a sharp increase in the U.S. dollar index. In recent months, there has been a consistent daily inverse link between the USDX and gold prices. This week’s gold market gain coincides with unstable global stock markets and concerns that mounting Covid infections in China would continue to hurt the second-largest economy in the world.
Today’s major international markets show a decline in the US dollar index. The price of crude oil on the Nymex is now trading at around $75.00 per barrel. The benchmark 10-year Treasury note’s current yield is 3.681% in the interim.
The U.S. Labor Department’s December employment status report is beginning to draw the attention of traders and investors. The important non-farm payrolls data is predicted to increase by 200,000, up from the November report’s increase of 263,000.
The MBA Mortgage Applications Survey, the Johnson Redbook Weekly Retail Sales Report, the ISM Report on Business Manufacturing, domestic car sector sales, and the minutes from the most recent FOMC meeting are among the U.S. economic data sets scheduled for publication on Wednesday.