Gold & Silver Test Support Levels and Moves Higher

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	Which Metals Will Shine In 2022?
	Secular trends and historic cycles support a strong year for metals and mining . . . . Baker Steel Capital Managers LLP
	Goldman Sachs Long Gold, Sees Prices Rising To $2,150
	Even after a dismal 2021, Goldman Sachs is not ready to give up on gold as the investment banking giant is raising its price forecast . . . . Neils Christensen
	Gold Has Performed Well In Past Four Fed Rate Hike Cycles
	If we look at the past four Fed tightening cycles, between February 1994 and December 2015, the yellow metal underperformed in the months leading up to the Fed’s first rate hike but then outperformed U.S. stocks . . . . Frank Holmes
	Bank Of America Is Bullish On Uranium, Aluminum, Nickel, Silver And Gold For 2022
	The best performing precious metal for the week was palladium, up 12.68% . . . . Frank Holmes
	China's Gold Demand Surged In 2021
	China's demand for gold coins and bars rose by 44 percent to 285 tonnes in 2021 . . . . Chen Tong

Last Friday was a key day in the ultimate direction of the Gold price. Let me explain.

Gold closed Thursday right on the key $1,800 per ounce support/resistance level. At the start of Friday’s trading, U.S. 10-Year Treasury rates moved to a 3-year high, over 1.92%. Gold started dropping, then the Bureau of Labor Statistics released the January U.S. nonfarm employment data. That number was 467,000 new jobs for January 2022, which was substantially higher than the estimate of 150,000 jobs. The Bureau of Labor Statistics also underestimated their numbers for November and December 2021, adding 700,000 new jobs. The majority of the 2021 and 2022 new jobs were in the service sector of our economy.

On Friday, the Gold market initially reacted negatively to the increase in interest rates and the employment surge by dropping through the key $1,800 level and reaching a low of $1,792 per ounce and apparently was heading lower on heavy selling. At that point in Gold trading, bargain buyers and institutional buying appeared on the highest trading volume of the month to drive the Gold price higher. An excellent technical and fundamental indicator of a bullish market is when a market makes a low, then, on high volume, reaches and closes at the high of the day. Gold reached a high of $1,809 and closed at that level, up $22 for the week. Friday’s trading is an excellent sign that the direction of the Gold price is higher.

Although staying above the key $1,800 level is important, Gold needs to break above the $1,850 level for the professional commodity traders to get bullish. The fact that Gold has managed to stay above $1,800 with record high interest rates and a very strong U.S. Dollar is an excellent indicator of strong demand and a higher price on the horizon. My current advice is to take advantage of the current low prices and add to your precious metal holdings.

Today: After a strong close on Friday, Gold has been moving higher since the open of trading. Concerns about January inflation numbers has driven down the U.S. Dollar Index below 95.50, as Gold demand heats up. Gold reached a high today of $1,819 fresh buying.

Last week, Silver showed good price support above the $22 per ounce level, briefly reaching a low of $21.97 on Thursday, but excellent demand on strong volume rallied the price to $22.45 by Friday. Demand for physical Silver investment coins and bars remains strong as the U.S. Mint announced it sold five million 1oz Silver eagles in the month of January. Silver lost its precious metal market leadership role last week as Gold increased $22 per ounce for the week. The Silver-to-Gold ratio has stayed over 80-to-1. At the current price, Silver appears to be a better value than Gold, so I would expect to see Silver lead the precious metal market higher this week.

Today: Silver took the precious metal lead today, showing fresh buying and briefly moving above the key $23 per ounce resistance level. Commodity traders are anticipating strong January inflation data, which is scheduled to be released this coming Thursday.