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Volatility roller-coaster keeps running

Commentaries & Views

Gold crawled along $1975 overnight; traders who bought the dip at support are being rewarded this morning; however, bulls should be aware of resistance around the $2015 level.

$25.35 acted as support for silver in overnight trading for silver. The GSR (gold/silver ratio) has also bounced off of support levels, at 76, with the top of its recent range around 80.5. The short-term candles on the ratio indicate that it seems to want to move back up to test that upper boundary. The metals may be in for further consolidation; so far, that consolidation appears to be developing as a sideways churn.

The volatility roller coaster continues to thrill traders across the spectrum of asset classes. This morning is no exception, with stock index futures pointing to a 1% drop at the open after news broke that peace talks in Eastern Europe have failed for now. However, the US treasury market is trading relatively flat. This may indicate that the market is starting to believe some kind of peace is the most likely outcome.

US CPI data is scheduled for release at 8.30 AM. Although conflict news headlines have been the recent driver of volatility, seasoned traders and investors are likely highly conscious that (in modern markets) central bank monetary policy is the long-standing undercurrent that has the power to sustain, or reverse longer-term price trends.

Thanks and have a great day,

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