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Gold price up amid keener risk aversion

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(Kitco News) - Gold futures prices are higher in early U.S. trading Monday, as it's a general “risk-off” trading day in the marketplace today start the trading week. Silver is weaker on a corrective pullback from recent good gains. February gold futures were last up $8.40 at $1,839.90 and March Comex silver was last down $0.215 at $24.10 an ounce.

Geopolitics is on the front burner of the marketplace at present, which is causing some anxiety among traders and investors. Iran-backed terrorists used drones to strike the United Arab Emirates capital of Abu Dhabi. No major damage occurred as the drones were intercepted. This was the second such drone attack by the terrorists. Meantime, Russia appears poised to invade Ukraine, despite the West's efforts to dissuade Russian President Putin by threatening sanctions. The U.S. has ordered its diplomats to leave the Ukraine due to the prospect of war.

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Serious near-term technical damage has been inflicted upon the U.S. stock indexes, to suggest they have at put in near-term market tops.

The U.S. data point of the week will be the Federal Reserve's Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. It's expected the Fed will raise U.S. interest rates at its March FOMC meeting.


Gold price next week: a breakout or a sideways trap? All eyes on hawkish Fed and stocks volatility - analysts

In other news, crypto currencies continue to get hammered. Bitcoin has now lost around half its value from the high scored in November. The crypto currency Ether has lost about a third of its value since last Thursday.

The key outside markets today see crude oil prices slightly down and trading around $84.75 a barrel. The U.S. dollar index is higher early today. The U.S. Treasury 10-year note yield is presently fetching 1.733%.

U.S. economic data due for release Monday includes the Chicago Fed national activity index, and the flash U.S. services and manufacturing purchasing managers' indexes (PMI).

Live 24 hours gold chart [Kitco Inc.]

Technically, the February gold futures bulls have the firm overall near-term technical advantage amid a five-week-old price uptrend in place on the daily bar chart. Bulls' next upside price objective is to produce a close in February futures 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 the overnight high of $1,844.90 and then at the January high of $1,848.50. First support is seen at Friday's low of $1,828.40 and then at $1,820.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures bulls have the overall near-term technical advantage. Prices are in a five-week-old uptrend 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 the overnight high of $24.36 and then at Friday's high of $24.64. Next support is seen at $24.00 and then at $23.68. Wyckoff's Market Rating: 6.0.

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.