Gold and silver prices were essentially flat early Wednesday as a rally in precious metals appeared to pause after recording solid gains in the prior session.
Gold prices for February
delivery rose $1.40, or 0.1%, to $1,826 per ounce on Comex, according to FactSet data.
Silver prices for March
fell 3 cents, or 0.1%, to $24.15 per ounce after settling at their highest level since April on Tuesday.
March palladium prices PAH23 fell $23, or 1.3%, to $1,710 per ounce, while platinum prices for January
retreated $6.90, or 0.7%, to $1,006.
Copper prices due in March
climbed 1 cent, or 0.1%, to $3.804 per pound.
Gold ripped higher on Tuesday as the dollar weakened while the Japanese yen surged following the Bank of Japan’s surprise decision to loosen its grip on the country’s domestic bond market.
Now, precious metals strategists see gold advancing further heading into next year as the dollar looks set to soften.
“If we are embarking on an extension of this dollar downtrend, then gold should be one of the beneficiaries as we look towards 2023,” analysts at the Sevens Report said in a Wednesday note.
Gold prices peaked north of $2,000 per ounce in March before embarking on a months-long slide as investors shunned precious metals in favor of the U.S. dollar and Treasurys, which offered their highest yields in more than a decade.
However, that trend started to shift early last month as the greenback retreated from its strongest level in decades, giving a newfound lift to gold and silver.
Gold prices have risen by more than $150 per ounce since then. Jim Wyckoff, senior analyst at Kitco.com, said bulls remain firmly in control of the price action in both gold and silver.