Profit-taking put pressure on gold and silver prices.
2026-01-16 23:49:49
On Friday (January 16), during the US trading session, gold and silver bulls once again delivered a strong performance this week, with both metals hitting record highs. Now, with the three-day US holiday weekend approaching, short-term futures traders are taking profits and partially locking in gains. Furthermore, risk aversion in the overall market cooled somewhat later in the week. February gold futures were trading at $4,559.1 per ounce, down $64.6; March silver futures were trading at $87.390 per ounce, down $4.957.
The US dollar index is poised for its third consecutive weekly gain. After hitting a six-week high on Thursday, the index traded steadily in early trading today. Strong US economic data eased market expectations for further interest rate cuts by the Federal Reserve, potentially propelling the dollar index to its third consecutive weekly rise. Weekly initial jobless claims in the US were far below expectations, indicating a resilient labor market, and some manufacturing survey data also exceeded expectations. Several Federal Reserve officials also emphasized signs of a stable labor market and warned of potential inflation risks.
The president of the Kansas City Federal Reserve stated that interest rates will remain stable. Kansas City Federal Reserve President Jeff Schmid said that U.S. interest rates should be maintained at a level that continues to exert some pressure on the economy to further curb inflation. Schmid said on Thursday that he believes further rate cuts would not be very effective in bridging any gaps in the labor market, which he believes are caused by structural factors. Schmid also discussed the Fed's independence and its federal structure, saying that this decentralized system allows for different opinions on the correct direction of monetary policy, which he considers an advantage.
The United States and Taiwan have reached a trade agreement. The agreement reduces tariffs on imports from Taiwan to 15% and requires Taiwanese semiconductor companies to invest an additional $500 billion in financing for their U.S. operations. Taiwan's technology sector will commit to at least $250 billion in direct investment to expand its advanced semiconductor, energy, and artificial intelligence businesses in the United States. Taiwan has also agreed to provide an additional $250 billion in credit guarantees to support further investment in the U.S. semiconductor supply chain.
China is cracking down on high-frequency trading. Reports indicate that the Chinese government is requiring local exchanges to remove computer servers dedicated to high-frequency trading from their data centers. This regulatory-led move will impact both domestic and international institutions. This change will weaken the speed advantage previously enjoyed by high-frequency traders—who could achieve slightly faster trade execution by using servers in exchange-owned data centers. Futures exchanges have already developed preliminary plans to increase latency for all server connections from third-party data centers, further reducing the speed advantage for high-frequency traders. Sources familiar with the matter revealed that commodity futures exchanges in Shanghai and Guangzhou have asked local brokers to move their clients' servers out of exchange-operated data centers, a move reportedly led by regulators.
(COMEX Gold Daily Chart Source: FX678)
From a technical perspective, the next upside price target for February gold futures bulls is a close above the strong resistance level of $4,750.00. The near-term downside price target for bears is to push futures prices below the strong technical support level of $4,400.00. The first resistance level is seen at the all-time high of $4,650.50, followed by $4,675.00; the first support level is seen at Thursday's low of $4,584.50, followed by $4,550.00.
March silver futures are in a clear chart advantage for bulls, with their next upside target being a close above the strong technical resistance level of $100.00. Bears' next downside target is a close below the strong support level of $80.00. The first resistance level is seen at the overnight all-time high of $93.70, followed by $94.00; the next support level is seen at Thursday's low of $86.125, followed by $85.00.
Note: The gold market operates primarily through two pricing mechanisms. The spot market offers prices for immediate purchase and delivery; the futures market determines the price for delivery on a future date. Due to year-end position adjustments and market liquidity, the most actively traded contract on the Chicago Mercantile Exchange (CME) is currently the December gold futures contract.
The US dollar index is poised for its third consecutive weekly gain. After hitting a six-week high on Thursday, the index traded steadily in early trading today. Strong US economic data eased market expectations for further interest rate cuts by the Federal Reserve, potentially propelling the dollar index to its third consecutive weekly rise. Weekly initial jobless claims in the US were far below expectations, indicating a resilient labor market, and some manufacturing survey data also exceeded expectations. Several Federal Reserve officials also emphasized signs of a stable labor market and warned of potential inflation risks.
The president of the Kansas City Federal Reserve stated that interest rates will remain stable. Kansas City Federal Reserve President Jeff Schmid said that U.S. interest rates should be maintained at a level that continues to exert some pressure on the economy to further curb inflation. Schmid said on Thursday that he believes further rate cuts would not be very effective in bridging any gaps in the labor market, which he believes are caused by structural factors. Schmid also discussed the Fed's independence and its federal structure, saying that this decentralized system allows for different opinions on the correct direction of monetary policy, which he considers an advantage.
The United States and Taiwan have reached a trade agreement. The agreement reduces tariffs on imports from Taiwan to 15% and requires Taiwanese semiconductor companies to invest an additional $500 billion in financing for their U.S. operations. Taiwan's technology sector will commit to at least $250 billion in direct investment to expand its advanced semiconductor, energy, and artificial intelligence businesses in the United States. Taiwan has also agreed to provide an additional $250 billion in credit guarantees to support further investment in the U.S. semiconductor supply chain.
China is cracking down on high-frequency trading. Reports indicate that the Chinese government is requiring local exchanges to remove computer servers dedicated to high-frequency trading from their data centers. This regulatory-led move will impact both domestic and international institutions. This change will weaken the speed advantage previously enjoyed by high-frequency traders—who could achieve slightly faster trade execution by using servers in exchange-owned data centers. Futures exchanges have already developed preliminary plans to increase latency for all server connections from third-party data centers, further reducing the speed advantage for high-frequency traders. Sources familiar with the matter revealed that commodity futures exchanges in Shanghai and Guangzhou have asked local brokers to move their clients' servers out of exchange-operated data centers, a move reportedly led by regulators.
(COMEX Gold Daily Chart Source: FX678)
From a technical perspective, the next upside price target for February gold futures bulls is a close above the strong resistance level of $4,750.00. The near-term downside price target for bears is to push futures prices below the strong technical support level of $4,400.00. The first resistance level is seen at the all-time high of $4,650.50, followed by $4,675.00; the first support level is seen at Thursday's low of $4,584.50, followed by $4,550.00.
March silver futures are in a clear chart advantage for bulls, with their next upside target being a close above the strong technical resistance level of $100.00. Bears' next downside target is a close below the strong support level of $80.00. The first resistance level is seen at the overnight all-time high of $93.70, followed by $94.00; the next support level is seen at Thursday's low of $86.125, followed by $85.00.
Note: The gold market operates primarily through two pricing mechanisms. The spot market offers prices for immediate purchase and delivery; the futures market determines the price for delivery on a future date. Due to year-end position adjustments and market liquidity, the most actively traded contract on the Chicago Mercantile Exchange (CME) is currently the December gold futures contract.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
