Make Kitco Your Homepage

Precious metals still bullish

Commentaries & Views

After a $35 gap up at open Sunday evening, which topped out at $1925, gold has come down to trade under $1915 again this morning. Silver traded in lockstep fashion with gold overnight.

Gold continues to find support around $1,880. As long as bulls maintain the recently established pattern of higher highs, the bias in the metals sector remains bullish. Platinum bulls have minor support at $1055 and still look to retake $1065 convincingly.

Conversely, stock futures gapped down at open last night. A fear-driven selloff most likely transpired as evidenced not only by gold but also by the massive bid in the USD index and US treasury market. Although equity futures are still lower this morning, more than half of the drawdown has been recovered. Contrarian stock bulls will likely continue to look for a bottom in indices, despite the tension in Eastern Europe remaining high for now.

US jobs data is scheduled for release Friday, but traders should continue to expect knee-jerk volatility across all asset classes for the duration of the week.

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.