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Safe-Haven demonstration

Commentaries & Views

Last night at 9.45 PM EST, as soon as gold peaked its yellow head over $1915 again, the metals took off. Gold traded as high as $1925 ahead of the news breaking that Russia invaded Ukraine.

Over $1930, the door was open to the Nov. 20, 2020, and Jan. 6, 2021, high at $1965. Gold got up to $1,973 spot before turning back down. $1955/65 is the level bulls should expect to act as resistance or support, going forward. Silver got up to $25.60 before cooling off and support may now lie at the $25 level. The gold to silver ratio suggests that should upward momentum persist, a catch-up trade for silver remains firmly on the table. Unsurprisingly, palladium was especially bid overnight, currently trading over $2600.

Stocks futures are opening lower this morning, which traders should have been expecting as a distinct possibility after major indices breached their Jan. 24 low earlier in the week. The fear in the market is palpable, as the rush to safe havens encompassed both the strongly bid USD and US treasury market; yields fell precipitously with the 10 year now at 1.86%. Contrarian stock market bulls may continue to see this dip as a buying opportunity.

Traders should continue to expect outsized volatility with US GDP data scheduled for release at 8.30 EST.

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.