Gold Follows Silver Higher, Driven by a New Wave of Technical Buying

FX678 January 23rd News—— On Thursday (January 22nd) during the US trading session, gold prices rose, approaching this week’s historic highs, while silver prices surged significantly, hitting a historical high of $95.885 (based on the March New York Mercantile Exchange futures). As both metals maintained strong bullish technical patterns, technical-based buying was very active. February gold rose by $47.3 in intraday trading, quoted at $4,884.8. March silver increased by $3.313, quoted at $95.95.

On Thursday (January 22nd) during the US trading session, gold prices rose, approaching this week’s historic highs, while silver prices surged significantly, hitting a historical high of $95.885 (based on the March New York Mercantile Exchange futures). As both metals maintained strong bullish technical patterns, technical-based buying was very active. February gold rose by $47.3 in intraday trading, quoted at $4,884.8. March silver increased by $3.313, quoted at $95.95.



Despite an increase in risk appetite among traders and investors, both precious metals still recorded gains today. President Trump stated on Wednesday afternoon that he would not impose tariffs on goods from European countries opposing his attempt to take over Greenland, citing that both sides had reached a “framework for a future agreement” on the island.

Market sentiment was also soothed by a rebound in Japanese government bonds for a second consecutive trading day on Thursday, led by ultra-long-term bonds. Previously, Japanese Finance Minister Satuki Katayama called for calm in the market, and some fund managers saw the recent surge in yields as a buying opportunity on dips. Traders will be watching the Bank of Japan’s policy decision on Friday, as well as any comments from Governor Kazuo Ueda on the market, while also focusing on next week’s 40-year Japanese government bond auction.

In today’s main external markets, crude oil prices declined, trading near $59.75 per barrel (UTC+8). The US dollar index fell sharply, while the yield on the US 10-year Treasury note is currently around 4.25% (UTC+8).


(COMEX Gold Daily Chart Source: Yihuitong)

From a technical perspective, the next upside target for February gold futures bulls is to close above the key resistance at $5,000.00 (UTC+8). The next short-term downside target for bears is to push futures prices below the key technical support at $4,539.10 (UTC+8). Initial resistance is at the historical high of $4,891.10 (UTC+8), followed by $4,900.00 (UTC+8). Initial support is at $4,800.00 (UTC+8), then the overnight low of $4,772.70 (UTC+8).

March silver futures bulls enjoy a strong chart advantage, with their next upside target being to close above the key resistance at $100.00 (UTC+8). The next downside target for bears is to close below the key support at this week’s low of $86.57 (UTC+8). Initial resistance is at $96.00 (UTC+8), followed by $97.50 (UTC+8). Next support is at $92.00 (UTC+8), then $90.00 (UTC+8).

Note: The gold market mainly operates through two pricing mechanisms. The first is the spot market, which provides prices for immediate purchase and delivery. The second is the futures market, which sets prices for future delivery. Due to year-end position adjustments affecting market liquidity, the most actively traded contract on the Chicago Mercantile Exchange (CME) is currently the December gold futures contract.