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Holding Pattern in Play

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.

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