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Gold rips higher overnight

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

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

Commentaries & Views

Gold prices shot higher Sunday evening; however, the rally was capped at $2000 before cooling off. Bulls will be looking to find support around the $1975 level.

Despite yesterday’s gap up open, silver has yet to take the lead in the metal’s advance. Silver bulls may now be looking to $25.50-60 to act as support rather than resistance. Platinum was sold after a run to $1165 overnight. It trades $1135 as of this writing, which is within the most likely parameters for a consolidation. Palladium made new all-time highs overnight, hitting $3420 on escalating fears of supply constraint.

Volatility remains central as news of the Russia/Ukraine conflict continues to break. Stock futures are pointing to a lower open this morning. Still, they have again recovered 50% of the overnight drawdown, this time on news that a ceasefire has been agreed upon for the day. Russia has also outlined clearer terms for its withdrawal from Ukraine. With the general commodities sector continuing to make higher highs at a blistering pace, resolution of the conflict is becoming increasingly politically expedient.

Traders should continue to be vigilant this week. There is still no shortage of catalysts, with US inflation data scheduled for release Thursday morning as well.

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.