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Gold, silver see profit-taking pressure Thursday

Kitco News

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 weaker in midday U.S. trading Thursday, on some profit-taking pressure from the shorter-term futures traders following recent gains. The precious metals had been supported this week by friendly daily outside markets that included 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 $8.30 at $1,819.00 and March Comex silver was last down $0.062 at $23.15 an ounce.

The U.S. got another key inflation report today. The December producer price index rose by 0.2% from November. The December PPI was 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 also monitored Federal Reserve governor Lael Brainard's comments as she appeared today before a Senate committee regarding her nomination for vice chair of the Federal Reserve. Brainerd to lawmakers the Fed's main goal is to fight problematic inflation.

Fed's Powell gives hope to gold bulls in Q1 2022, watch the $1,830 level - Pepperstone

The PPI report and Brainard's comments had no major impact on market prices.

Global stock markets were mostly higher overnight. U.S. stock indexes are lower at midday. Risk appetite is not robust late this week, but neither is risk aversion.

The key "outside markets" today see Nymex crude oil futures prices weaker and trading around $82.50 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%.

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 today's low of $1,811.80 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.