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Gold, silver consolidating higher

Commentaries & Views

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.

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.