Gold, silver consolidating higher
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
This morning, gold and silver are trading around $1,895 and $23.80, respectively. Platinum is offered around $1,079 and palladium is around $2,372. All of the precious metals seem to be consolidating above recent support levels -- a bullish sign for the complex. Metals bulls will be looking for gold to continue to lead with a breakout above the $1,900 level.
Although the U.S. 10-year yield and U.S. dollar index (DXY) trade in a stable fashion this morning, equity futures are pointing to a lower open. The stock market has been trading on Russia/Ukraine conflict headlines and continued to react to the news over the weekend and in the overnight hours. From a technical perspective, a breach of the Jan. 24 low would open the door to another leg down in the indices.
Thin volume, on account of Presidents’ Day in the U.S., combined with the overhanging geopolitical threat, may trigger further knee-jerk reactions. Traders should be prepared for possible outsized volatility.