Gold, silver kick off 2023 by advancing to highest levels in months

Gold prices kicked off the first trading session of 2023 on Tuesday by advancing to fresh 6-month highs, bolstered by lower bond yields and expectations about more central-bank buying.

Other precious metals were trading at notable levels, including silver, which saw the most-active contract trade at its highest level since April, while platinum traded at its highest level since March.

Price action
  • Gold prices due in February


    advanced $17.40, or 1%, to $1,843 per ounce on Comex, according to FactSet data. That’s the highest level for a most-active contract since mid-June.

  • Silver prices due in March


    climbed 53 cents, or 2.2%, to $24.56 per ounce, the highest level for a most-active contract since mid-April.

  • April platinum

    advanced $12.70, or 1.2%, to $1,095 per ounce, the highest level for a most-active contract since the first half of March. The precious metal recorded its strongest quarterly advance since 2008 in the three months ended Dec. 31.

  • Palladium expiring in March

    fell $7.50, or 0.4%, to $1,790 per ounce.

  • Copper prices due in March

    rose 2 cents, or 0.6%, to $3.834 per pound.

Market drivers

Gold and silver prices managed to kick off the year at the highest level in several months with the outlook for precious metals improving markedly recently, analysts said.

Prices continued to advance despite a stronger U.S. dollar as traders focused instead on lower Treasury yields while purchases by the People’s Bank of China has inspired hope among traders that some central banks might increase the share of their reserves allocated to gold.

“Central bank purchases might be another factor, following reports last month that the People’s Bank of China has started to increase its gold reserves,” said Marios Hadjikyriacos, senior investment analyst at XM.

The ICE U.S. Dollar Index

rose 1% to 104.57, while the 10-year yield

dropped 10.6 basis points to 3.771%.

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