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Gold, silver see price pressure amid higher USDX, rising Treasury yields

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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 and silver futures prices are solidly lower and hitting daily lows in early U.S. dealings on this first trading day of 2022. Bearish daily elements that include a higher U.S. dollar index, weaker crude oil prices and rising U.S. Treasury yields are negatives for the precious metals. Also, mostly higher stock indexes overnight suggest low trader and investor risk aversion in the marketplace at present—and that's bearish for the safe-haven metals. February gold futures were last down $18.90 at $1,810.00 and March Comex silver was last down $0.477 at $22.995 an ounce.

Global stock markets were mostly firmer overnight. Markets in China, Japan and Australia were closed. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The S&P 500 stock index gained 27% in 2021, while notching 70 record highs on the year.

While there is little risk aversion in the marketplace at present, some market analysts believe 2022 will be a rockier year for the stock markets, what with rising inflation, central banks reining in their heretofore easy money policies, and the globe still doing battle with the pandemic. There are also lingering geopolitical issues that could quickly move to the front burner of the marketplace, such as Russia's troop build-up on its Ukrainian border, and China's property market bubble that may be bursting.

Retail Investor see gold hitting record highs above $2,000 in 2022

The key "outside markets" today see Nymex crude oil futures prices down and trading around $75.00 a barrel. The U.S. dollar index is higher early today. The yield on the U.S. 10-year Treasury note is presently fetching 1.541%. U.S. bond yields have been on the rise for three weeks.

U.S. economic data due for release Monday includes the U.S. manufacturing purchasing managers index (PMI) and construction spending.

Live 24 hours gold chart [Kitco Inc.]

Technically, the February gold futures bears have the overall near-term technical advantage amid a three-week-old price downtrend in place on the daily chart. However, the bulls need to show fresh power soon to keep it alive. Bulls' next upside price objective is to produce a close in February futures above solid resistance at $1,840.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $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. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bears have the overall near-term technical advantage, but bulls are still working on a price uptrend and need to show fresh power soon to keep it alive. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at today's high of $23.44 and then at the December high of $23.48. Next support is seen at last week's low of $22.60 and then at $22.50. Wyckoff's Market Rating: 4.0.

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.