Gold, silver see price pressure amid higher USDX, rising government interest rates

Welcome to Kitco News’ 2022 Outlook series. The new year will be fraught with uncertainty as the Federal Reserve appears to be turning and tightening its monetary policy. At the same time, the inflation threat continues to grow, which means that real interest rates remain in low to negative territory. Follow Kitco News to learn from the experts on how to navigate turbulent financial markets in 2022.

(Kitco News) – Gold and silver Futures prices are solidly lower and hit daily lows in early US trading on this first trading day in 2022. Bearish daily items that include a higher US dollar index, weaker crude oil prices and rising US government interest rates are negative for the precious metals. Also, mostly higher stock indices overnight suggest low risk aversion among traders and investors in the market at the moment – and this is bearish for the metals to safe haven. Gold futures in February last fell $ 18.90 to $ 1,810.00, and March Comex silver last fell $ 0.477 to $ 22,995 per ounce.

Global stock markets were mostly stronger last night. The markets in China, Japan and Australia were closed. US stock indices point to higher openings as the New York Day session begins. The S&P 500 stock index rose 27% in 2021, reaching 70 record highs this year.

Although there is little risk aversion in the market at the moment, some market analysts believe that 2022 will be a more rocket year for stock markets, what with rising inflation, central banks curbing their hitherto easy monetary policy and the globe still struggling with pandemics. There are also lingering geopolitical issues that could quickly move to the marketplace’s burner, such as Russia’s troop buildup on its Ukrainian border, and China’s bubble in the real estate market, which may be bursting.

The major “outdoor markets” today see Nymex crude oil futures fall and trade around $ 75.00 per barrel. barrel. The US dollar index is higher early today. The yield on the US 10-year government bond is currently at 1.541%. US bond yields have been rising for three weeks.

U.S. economic data to be released on Monday includes the U.S. Purchasing Managers’ Index (PMI) and construction costs.

Live 24 hour gold chart [Kitco Inc.]

Technically, the February gold futures bears have the overall technical advantage in the short term amid a three-week-old downward trend in place on the daily chart. However, the bulls will soon have to show fresh power to keep it alive. The Bulls’ next upside price target is to produce a closing in February futures over solid resistance of $ 1,840.00. The Bears’ next short-term downside price target is to push futures prices below solid technical support of $ 1,785.00. First resistance is seen at $ 1,821.60 and then at $ 1,850.00. First support is seen at $ 1,800.00 and then at $ 1,789.10. Wyckoffs Market Rating: 6.0

Live 24 hour silver chart [ Kitco Inc. ]

The March silver futures bears have the overall technical advantage in the short term, but bulls are still working on a price trend and will soon have to show fresh strength to keep it alive. The Silver Bulls’ next upside price target is to close prices above solid technical resistance of $ 24.00 an ounce. The next downward price target for the Bears is to close prices below solid support of $ 22.00. First resistance is seen at today’s highest at $ 23.44 and then at its highest in December at $ 23.48. Next support is seen at last week’s low of $ 22.60 and then at $ 22.50. Wyckoffs Market Rating: 4.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect them Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. or the author guarantees such accuracy. This article is for informational purposes only. It is not an invitation to make any exchanges of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article does not accept liability for losses and / or damages arising from the use of this publication.

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