Gold price up as FOMC minutes on deck this P.M.

(Kitco News , Tues. Jan. 5th, 2022) – Gold futures prices are trading higher and near their daily highs in early U.S. dealings Wednesday. The safe-haven metals are getting some support from a bit more risk aversion in the general marketplace at mid-week. Traders are awaiting the U.S. data point of the day, which is this afternoon’s Federal Open Market Committee FOMC minutes from the December meeting. February gold futures were last up $7.30 at $1,821.50 and March Comex silver was last up $0.149 at $23.205 an ounce.

The U.S. economic data pace picks up at mid-week, with the FOMC minutes due out this afternoon. Also, the ADP national employment report, just released, showed a rise of 807,000, which was way higher than the 375,000 gain expected. However, the markets showed little reaction to the report.
Other data out today include the weekly MBA mortgage applications survey, the U.S. services PMI, and the weekly DOE liquid energy stocks report.

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Risk appetite has receded a bit Wednesday. Omicron is rampant in the U.S. and other nations, which is causing worries the virus could again crimp global economies. There are reports U.S. government lawmakers have discussed another federal pandemic stimulus package for businesses that are still hurting from the economic effects of the virus.

U.S. Mint sees strongest gold coin sales in 12 years, sells 1.25 million ounces in 2021

In overnight news, the Euro zone December composite purchasing managers index (PMI) came in at 53.3 compared to a forecast for a reading of 53.4 and compares with a November number of 55.4.

The key “outside markets” today see Nymex crude oil futures prices near steady and trading around $77.00 a barrel. The U.S. dollar index is lower early today. The yield on the U.S. 10-year Treasury note is presently fetching 1.65%. U.S. bond yields have been on the rise for three weeks and have taken a big jump this week. Don’t be surprised to see renewed inflation concerns hit the marketplace in the near term and sap more risk appetite, as bond yields are likely to continue to rise.

Technically, the February gold futures bulls have the overall near-term technical advantage amid a three-week-old price uptrend in place on the daily chart. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at $1,840.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,785.00. First resistance is seen at the overnight high of $1,821.30 and then at $1,825.00. First support is seen at the overnight low of $1,812.70 and then at $1,800.00.

March silver futures bears have the overall near-term technical advantage, but bulls are still working on a price uptrend and need to show fresh power soon to keep it alive. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.25 and then at the December high of $23.48. Next support is seen at this week’s low of $22.655 and then at $22.50.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com