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Gold price slightly down ahead of U.S. inflation data, Fed-speak

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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 futures prices are down a bit in early U.S. trading Thursday, as the market pauses ahead of another U.S. inflation report and as a Federal Reserve official is set to testify to the Senate. The precious metals have been supported this week by friendly daily outside markets that include higher crude oil prices, a weaker U.S. dollar index and a slight drop in U.S. Treasury yields. February gold futures were last down $2.90 at $1,824.40 and March Comex silver was last up $0.043 at $23.245 an ounce.

The U.S. gets another key inflation report today. The December producer price index is expected to come in at up 0.4% from November and follows a rise of 0.8% in the November report. The consumer price index report that was out Wednesday ran hot, showing an annual rise of 7.0%.

Traders will also be monitoring Federal Reserve governor Lael Brainard's comments as she appears today before a Senate committee regarding her nomination for vice chair of the Federal Reserve.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. Risk appetite is not robust late this week, but neither is risk aversion.

This is the difference between gold price surging above $2k or plunging below $1,600 in 2022

The key "outside markets" today see Nymex crude oil futures prices near weaker and trading around $82.20 a barrel. Oil prices have rallied recently and are near last fall's seven-year high. The U.S. dollar index is weaker again and hit another two-month low early today. The U.S. Treasury 10-year note is presently yielding 1.75%.

Other U.S. economic data due for release Thursday includes the weekly jobless claims report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the February gold futures bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close in February futures above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the January low of $1,781.30. First resistance is seen at today's high of $1,828.30 and then at the January high of $1,833.00. First support is seen at Wednesday's low of $1,814.40 and then at $1,800.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

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 January high of $23.44 and then at the December high of $23.48. Next support is seen at $23.00 and then at Wednesday's low of $22.68. Wyckoff's Market Rating: 3.5.

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.