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Markets in the eye of the storm?

Commentaries & Views

With major overhead resistance intact at $1,915, gold ran sideways intraday yesterday, as did silver. After the recent run-up, the most likely short-term outcome remains price consolidation. Bulls may need time to gather energy to attempt a move higher. The other metals continue to look to gold to lead the sector higher. A weekly close over the $1,915 - $1,920 could be the catalyst for the catch-up trade in silver.

The equity markets are pointing to a higher open this morning while the U.S.-10 year yield continues to fluctuate in an orderly fashion along with the DXY. Although a hawkish fed has been pressuring stocks all year, geopolitical tension has likely exacerbated a "fear response," accounting for some of the recent selling pressure. Traders may view fear in the market as a buying opportunity, if even for a short-term trade. Historically, sentiment in the stock market is at extremely pessimistic levels, inviting the attention of who may now be considered contrarian stock market bulls.

US GDP data is scheduled for release tomorrow at 8.30 AM EST. Participants will be looking for clues to discern what future guidance the Federal Reserve may have in store regarding their path toward lifting interest rates.

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