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Gold rips higher overnight

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.

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