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Contributed Commentaries

Holding Pattern in Play

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

The stair-step move in gold continues with the metal having bounced firmly from Monday's $1,890 intraday low before trading back up to $1,925 overnight. Gold longs would love to see a weekly close over $1,915, or even better - $1,925.

Silver bulls are attempting to push prices convincingly over $24.50. A close over that level this week would reinforce the bullish penchant. Platinum failed to get back over $1,065, even after challenging that level twice in the last 24 hours; the third time may be the charm.

The U.S. 10-year yield is now floating at around at 1.76%. The USD is also trading up in relative terms. At the same time, the stock market remains on shaky ground, pointing to a lower open this morning.

Clearly, market participants remain on edge, which means knee-jerk volatility in all asset classes will likely persist. Should de-escalation in eastern Europe occur, it is plausible that cash would flow out of recent safe-haven plays, such as U.S. Treasuries, and back into stocks, which continue to attract the attention of contrarian bulls.

By Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
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.