Volatility - Continue to expect it
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Within minutes of approaching its all-time high, gold began the pullback leading into this morning’s open. Gold bulls may look to the $1995 area for minor support with larger support lower, around $1975.
The fear premium in safe-haven assets might be coming off somewhat today, as further encouraging news toward peace in Eastern Europe flows. Equity index futures are pointing to an almost +2% open in the Dow and the S&P this morning, while the 10-year yield has made its way back to a stable 1.89%; further clues that fear is subsiding, for now.
Some analysts expect a possible 10% inflation print tomorrow. The gap between expectations and reality, on the extremes on the spectrum, could be cause for more volatility as participants react and calibrate to align with the actual data. Of course, a 10% inflation number remains a distinct possibility.