Gold drifts sideways ahead of inflation data, Powell speech
Saxo Bank says gold has been the “star performer” during the first week of commodities trading

(USAGOLD – 1/10/2023) – Gold drifted sideways ahead of tomorrow’s all-important inflation report and Jerome Powell’s speech later today. It is level at $1874.50. Silver is down 19¢ at $23.56. Saxo Bank’s Ole Hansen offers a solid assessment of the developing demand for gold among futures traders in an analysis posted this morning. To sustain the momentum, though, he thinks gold will need further support from central bank and ETF investors. “Both of which are playing out,” he adds, “after China’s PBoC added 62 tons during November and December while ETFs last week saw its first back to back week of buying since last April.”

“Demand for gold,” he says, “which started to recover after the yellow metal made a triple bottom around $1620 back in November (See chart), extended into the new year with funds raising their net long by 8% to 7.8k lots, a seven-month high. Supported by momentum and the outlook for a friendlier 2023 for investment metals gold has been the star performer during the first week of trading. While many wise traders over the years have refrained from getting involved during the first few weeks of a new year, the continued rally has increasingly forced technical focused traders to get involved.”

Gold Price
(One Year)

Chart courtesy of TradingView.com