Gold, silver see price pressure as risk aversion recedes

(Kitco News, Tues. Feb. 15th, 2022) – Gold and silver futures prices are solidly lower in early U.S. trading Tuesday. Gold prices backed off from a nearly three-month high scored overnight, as risk appetite in the marketplace has up-ticked Tuesday as geopolitical tensions have eased just a bit…for now. Rising U.S. Treasury yields and sharply lower oil prices are also negatives for the precious metals on this day. April gold futures were last down $17.20 at $1,852.40 and March Comex silver was last down $0.528 at $23.32 an ounce.

The U.S. stock indexes have gotten a boost and are trading solidly higher on news reports that some Russian troops are backing away from the Ukrainian border. However, the Ukrainian president on Monday posted on FaceBook that Russia will invade his country on Wednesday. The upshot of the recent news headlines is that the situation is still very unpredictable and the geopolitical crisis is far from abating. Still, the reports have dented bullish enthusiasm in the safe-haven metals.

Global stock markets were mixed overnight, with European shares mostly up and Asian shares mostly down.

The U.S. data point of the day Tuesday is the latest U.S. inflation report, the producer price index for January, which is seen coming in hot, at up 0.5% from December.

Inflation is at a four-decade high, could a recession be next?

The yield on the U.S. 10-year Treasury note is presently fetching 2.035%. The key outside markets today see crude oil prices sharply down and trading around $92.15 a barrel after hitting a 7.5-year high Monday. The U.S. dollar index is lower early today.

Other U.S. economic data due for release Tuesday includes the Empire State manufacturing survey, Treasury international capital data, and the weekly Johnson Redbook and chain store sales indexes.

Technically, the April gold futures bulls have the firm overall near-term technical advantage. However, prices are scoring a big and bearish “outside day” down on the daily bar chart Tuesday. Bulls’ next upside price objective is to produce a close in February futures above solid resistance at the November high of $1,882.50. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,825.00. First resistance is seen at last week’s high of $1,867.40 and then at $1,882.50. First support is seen at the overnight low of $1,845.40 and then at $1,835.00.

March silver futures bulls and bears are on a level overall near-term technical playing field. However, the bulls are fading Tuesday as prices are scoring a bearish “outside day” down on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the January high of $24.755 an ounce. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.75 and then at $24.00. Next support is seen at the overnight low of $23.21 and then at $23.00.

Posted by :

Jack Dempsey, President

401Gold Consultants LLC

jdemp2003@gmail.com