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Gold pauses, silver soaring as bulls have power for more upside

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 prices took a routine rest day after scoring solid gains Wednesday, but silver bulls kept their foot on the gas to push prices sharply up. Both metals scored two-month highs today. The bulls are in firm near-term technical control, to suggest the path of least resistance for prices will remain sideways to higher for at least the near term. February gold futures were last down $1.20 at $1,841.90 and March Comex silver was last up $0.454 at $24.68 an ounce.

A report said the big jump in gold prices to a two-month high on Wednesday occurred as a big inflow of $305 million went into the SPDR gold exchange traded fund (ETF) on Wednesday. The report said that was the biggest money inflow into a gold ETF since November. This is just one more indicator of traders and investors worrying about and acting upon rising and even problematic inflation.

Global stock markets were mixed overnight, with European shares mostly up and Asian shares mostly down. U.S. stock indexes are solidly higher at midday.

In other news, China cut its main interest rates slightly, which is the second move this week to lower its key interest rates. China’s monetary authorities are trying to stimulate their listing economy. The China rate cuts come as other major central banks of the world are looking to tighten their monetary policies. Meantime, the Euro zone consumer price index for December was reported up 5.0%, year-on-year, which was right in line with market expectations, but still hot.


Gold to shine as investor apathy to risk falls in 2022 - Sprott's Grosskopf

The key outside markets today see crude oil prices slightly up and trading around $87.12 a barrel. The U.S. dollar index is a bit firmer today. The U.S. Treasury 10-year note yield is presently fetching 1.835%.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures prices also hit another two-month high today. Bulls have the firm overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the November high of $1,881.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,848.50 and then at $1,850.00. First support is seen at $1,833.00 and then at $1,820.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures prices hit another two-month high today. The silver bulls have the firm overall near-term technical advantage. A four-week-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the November high of $25.54 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at today’s high of $24.755 and then at $25.00. Next support is seen at $24.50 and then at today’s low of $24.125. Wyckoff's Market Rating: 6.5.

March N.Y. copper closed up 1,050 points at 457.45 cents today. Prices closed near the session high today and closed at a three-month-high close. The copper bulls have the firm overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 460.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 431.35 cents. First resistance is seen at 460.10 cents and then at 465.00 cents. First support is seen at 450.00 cents and then at today’s low of 444.40. Wyckoff's Market Rating: 7.0.

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.