Gold price powers to 9-month high

Welcome to Kitco News' 2023 Outlook Series. Uncertainty continues to dominate financial markets as central bank monetary policies push the global economy into a recession to cool down inflation. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2023.

(Kitco News) - Gold prices are higher and scored a nine-month peak in early U.S. trading Tuesday. Fully positive charts and some safe-haven demand are providing fuel for the bullish fire in the yellow metal. The path of least resistance for prices remains sideways to higher, with no early technical clues that a market top is close at hand. February gold was last up $8.10 at $1,936.60 and March silver was up $0.196 at $23.75.

The recent depreciation in the U.S. dollar on the foreign exchange market is partly responsible for gold's surge. However, longtime market watchers are wondering if metals traders sense the geopolitical landscape will significantly heat up in the coming months. An interesting news headline this morning from Barron's: "A summer of sovereign debt crises could be coming. Is the Fed ready?" Meantime, a headline from the Wall Street Journal today reads: "Hopes for a markets recovery hinge on big drop in inflation." In other words, if inflation heats back up again, the general marketplace would be in big trouble. Maybe gold traders are sensing that scenario may occur, too.