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Volatility Is Back, Metals On The Roller Coaster

Commentaries & Views

Equities are getting clobbered again this morning as volatility is back. This week, the equities have had 300-point ranges everyday showing price volatility. The metals have been active as well but remain in a consolidation range indicating they are setting up a big move as well.

The most interesting item of the week, with the equities seeing increasing fear, interest rates at 4-year highs, gold and silver have not rallied. This proves that gold and silver are commodities and not protection against your portfolio. Based on the equities, the metals should be much higher, yet they look like they are ready to break to the downside.

Wednesday and Thursday, gold had big rallies that failed, this morning with the Dow down 250, gold is lower. Interest rates are rising, 10-year notes are 2.8% and the 30-year bonds are over 3%. Gold and silver should be running higher but they are not, which indicates the short-term tops are in.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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