Gold, silver see modest price pressure from rising bond yields
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 a bit weaker in early U.S. action Monday. Rising government bond yields around the gold are a bearish element for the safe-haven metals markets. February gold futures were last down $3.70 at $1,793.50 and March Comex silver was last down $0.59 at $22.35 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Trader and investor risk aversion is not keen early this week, but neither is their risk appetite. Rising bond yields amid tighter monetary policies from major central banks of the world are giving the marketplace pause. Last week the Federal Reserve suggested it will raise U.S. interest rates three times in 2022, in order to curb rising inflation that is becoming more problematic.
The U.S. data point of the week will be Wednesday's consumer price index report for December, which is expected to come in at up 7.1%, year-on-year.
|Retail investors look to gold and silver for best results in 2022, Wall Street points to silver and platinum|
The key "outside markets" today see Nymex crude oil futures prices slightly lower and trading around $78.75 a barrel. The U.S. dollar index is firmer early today. The yield on the U.S. 10-year Treasury note is presently fetching 1.795%, which a pandemic era high.
U.S. economic data due for release Monday includes the employment trends index and monthly wholesale trade.
Technically, the February gold futures bulls and bears are on a level overall near-term technical playing field. Bulls' next upside price objective is to produce a close in February futures above solid resistance at the January high of $1,833.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the December low of $1,753.00. First resistance is seen at today's high of $1,802.00 and then at $1,811.60. First support is seen at the January low of $1,781.30 and then at $1,775.00. Wyckoff's Market Rating: 5.0
March silver futures bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the December high of $23.48 an ounce. The next downside price objective for the bears is closing prices below solid support at the December low of $21.41. First resistance is seen at the overnight high of $22.525 and then at $22.85. Next support is seen at $22.00 and then at $21.41. Wyckoff's Market Rating: 2.0.