Gold & Silver Testing Support Levels – 2022 Coin Update
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Stuppler & Company is proud to provide our clients this Weekly Market Report (WMR). The report gives you my overview of the prior week’s precious metal and rare coin market activity and news. In each WMR I share the current status of Gold and Silver along with their support and resistance levels. |
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This Week's Headlines: |
Last week, Gold closed everyday between $1,762 and $1,785 per ounce. Gold closed on Friday at $1,782 per ounce, down $2 for the week. Since breaking below the key $1,800 level on November 23rd, I have been looking for Gold to move back above that key level. But, a combination of a strong U.S. Dollar (above 96) and concerns about the effects that the new Covid-19 variant (Omicron) would have on economic recovery have kept Gold demand low.
Another issue that held Gold down last week was Federal Reserve Chairman Powell’s testimony to Congress, where he said the Fed could taper its bond-buying faster than originally planned. I continue to say that Gold needs to strongly move back above the key $1,800 level this coming week to keep the bullish sentiment from many of the professional commodity traders I’ve spoken with.
Today: The U.S. Dollar continues to move higher (above 96.4), which puts pressure on Gold valued in Dollars. Gold has spent today in the $1,775 to $1,785 trading range, without any new information or announcements. Gold could stay under pressure until we see current inflation data this coming Friday.
Silver tested its $22 per ounce support level on Friday before bouncing back on bargain buying and short-covering. Friday, Silver reached a low of $22.03 and quickly rallied $0.45 to close the week at $22.48 per ounce. I continue to believe that Friday’s Silver sell-off was an over-reaction to the Covid-19 news and the sell-off in most of the financial markets. Silver under $23.00 is an extraordinary bargain, especially with the Silver-to-Gold ratio at 79.35-to-1.
Today: Silver tested its $22 per ounce support level this morning, reaching a low of $22.09 before rallying $0.20 per ounce. Continued uncertainty about the Omicron variant and inflation isn’t helping the Silver price.
We have been getting a lot of initial requests from our clients looking to purchase the 2022 Gold and Silver Eagles as well as Gold Buffalos ungraded or in MS70 PCGS/NGC condition. Although we expect to do this in the coming weeks, the U.S. Mint still hasn’t fully released the details of their coin allocations and dates as of now. We expect to hear more detailed information soon. Once we have a better handle on the availability and the PCGS/NGC timeline, we will start offering these coins for pre-order. Please allow us to secure this information, so we can offer these coins at the most aggressively low prices possible.
