Gold, silver solidly up on geopolitical, inflation jitters

(Kitco News, Mon. Feb. 14th, 2022) – Gold and silver futures prices are posting good gains in midday U.S. trading Monday, with gold notching a nearly three-month high. This trading week is starting out “risk-off,” which is prompting safe-haven buying in the precious metals markets. The other element supporting the metals markets is heightened inflation concerns, as U.S. inflation is running at a 40-year high. April gold futures were last up $21.70 at $1,863.80 and March Comex silver was last up $0.401 at $23.77 an ounce.

Traders and investors are showing keener risk aversion to start the trading week, as the U.S. says Russia could invade Ukraine any day now. The uncertainty on the matter is likely to continue to run high, as the U.S. response to a Russian invasion of Ukraine is a wild card—running the gamut of the U.S. slapping more sanctions on Russia, to participating in a full-blown ground war in Europe.

Global stock markets were mostly lower overnight. U.S. stock indexes are mixed at midday. The stock indexes moved well off their overnight lows early this morning on a news report that the Russian foreign minister Lavrov said there may be a path forward on negotiations with the U.S. and European countries.

Potential Russian invasion of Ukraine could tip economies into an ‘outright recession’ – Morgan Stanley

Meantime, the yield on the U.S. 10-year Treasury note is presently fetching 2.019%.  That’s further stoking inflation concerns.

The key outside markets today see crude oil prices firmer and trading around $93.50 a barrel after hitting a seven-year high overnight. The U.S. dollar index is higher today.

There was no major U.S. economic data released Monday. However, the pace picks up Tuesday, including the latest U.S. inflation report, the producer price index for January, which is seen coming in up 0.5% from December.

Technically, April gold futures prices hit a nearly three-month high today. Bulls have the solid overall near-term technical advantage and gained more power today. Bulls’ next upside price objective is to produce a close 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 $1,800.00. First resistance is seen at today’s high of $1,872.80 and then at $1,882.50. First support is seen at today’s low of $1,851.90 and then at $1,840.00.

March silver futures prices hit a three-week high today. The silver bulls have gained the slight overall near-term technical advantage. Bulls are working on a fledgling price uptrend on the daily 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 $22.50. First resistance is seen at today’s high of $23.965 and then at $24.00. Next support is seen at today’s low of $23.555 and then at $23.25. Wyckoff’s Market Rating: 5.5.

March N.Y. copper closed up 35 points at 450.95 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Prices are in a choppy, two-month-old uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the February high of 470.85 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 428.20 cents. First resistance is seen at 455.00 cents and then at 460.00 cents. First support is seen at today’s low of 444.40 cents and then at 440.00 cents.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com