Gold and Silver Prices Threatening to Breakout Above Resistance

CLICK HERE FOR NEW Morgan Silver Dollars

CLICK HERE FOR NEW Peace Silver Dollars

CLICK HERE FOR NEW $20 Gold Saint Gaudens

Last shortened holiday week Gold traded between $1,785 and $1,835 per ounce, moving above and below the important $1,800 level. U.S. interest rates and the value of the U.S. Dollar also traded in a narrow range, giving no direction to precious metals. Gold ended the week at $1,795 per ounce, up $4 for the week.

Gold has traded above and below the key $1,800 level numerous times during the month of December, which is excellent base building. One of the catalysts for Gold was last week’s announcement by the Bank of Japan moving to tighten its monetary policy. This move caused the Yen to rally to the highest rate this year versus the U.S. Dollar. Gold tested the $1,835 resistance level a few times, and any break above $1,835 should drive Gold much higher.

This week, many of the professional commodity traders are on vacation and I don’t except to see much volume or direction until Jan 3rd, 2023. December was an excellent month for Gold, building a firm base around $1,800. I expect to see Gold close the year above $1,800 per ounce.

Today: This morning, Gold has jumped $20 on news of China relaxes many of the COVID restrictions for residents and visitors. The Chinese are one of the world’s largest consumers of Gold and that demand has been down due to Covid restrictions by the Chinese government. It is strongly believed that demand will be back and very soon. Gold did reach a high of $1,835 before seeing some short-term profit taking.

Silver, like Gold, traded last week in a narrow range, but with Silver’s volatility, the range was wider. Silver reached a low of $23.52 and a high of $24.36 last week. Like Gold, Silver also has a key resistance level, and it’s $24 per ounce.

Silver closed at $23.76 per ounce last Friday, up $0.54 for the week.

Today: Silver rallied with Gold this morning, crossing back above the key $24 level and reaching a high of $24.39 before seeing some light selling.