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Gold price rallies amid keener risk aversion Friday

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Welcome to Kitco News' 2022 outlook series. The new year will be filled with uncertainty as the Federal Reserve looks to pivot and tighten its monetary policies. At the same time, the inflation threat continues to grow, which means real rates will remain in low to negative territory. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2022.

(Kitco News) - Gold prices are posting solid gains and hit a three-week high in early U.S. trading Friday, boosted by safe-haven demand as the marketplace is showing a bit of anxiety to end the trading week. February gold was last up $15.40 at $1,813.50 and March Comex silver was last up $0.12 at $22.605 an ounce.

Global stock markets were mostly lower in overnight trading. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Today is the quarterly triple- witching phenomenon--the simultaneous expiration of stock options, index options and index futures. These days can cause higher volatility. The stock market bulls late this week have quickly pulled in their horns. It seems traders and investors have pivoted after the U.S. stock indexes posted strong gains in the immediate aftermath of the FOMC meeting Wednesday afternoon. Thursday's and Friday's price action in the stock markets suggest traders and investors have realized they are now staring down the double-barrel shotgun of rising interest rates/inflation and a resurging coronavirus that threatens to again crimp global economic growth. It could be that other major central banks moving to tighten their monetary policies or signaling their intent to do so, shortly after the Wednesday FOMC meeting pushed traders and investors into risk-averse postures.

Gold prices surged to a nearly three-week high Friday, above $1,800.00, on safe-haven demand and as traders seek out the metals as an inflation hedge.


Post-Fed is the time for gold price to take the reigns, says Standard Chartered

In overnight news, the Euro zone reported its November consumer price index up 0.4% from October and up 4.9%, year-on-year.

The key "outside markets" today see Nymex crude oil prices lower and trading around $71.00 a barrel. The U.S. dollar index is slightly higher today. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.429%.

There is no major U.S. economic data due for release today.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures bulls have gained the overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at $1,819.30 and then at $1,825.00. First support is seen at $1,800.00 and then at $1,785.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

The March silver bears still have the overall near-term technical advantage. However, a four-week-old price downtrend on the daily bar chart has been negated to suggest a market bottom is in place. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $23.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at $22.75 and then at $23.00. Next support is seen at $22.25 and then at $22.00. Wyckoff's Market Rating: 2.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.