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Volatility - Continue to expect it

Commentaries & Views

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.

Although at lower nominal levels, silver is showing relative strength this morning, as evidenced by the lower gold to silver ratio.

Platinum continues to consolidate between $1100 and $1135, while palladium floats around $3000. The bullish trend for monetary metals remains well intact, despite the current pullback.

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.

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.