Brace for more volatility
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Conflicting news headlines regarding the path to peace in Eastern Europe continue to drive volatility in early trading this morning. After the recent sell-off it would not be surprising to see gold trade back up to the $1985-$1995 level from the current $1965 price. Should $1965 become resistance however, hopes of a short term bounce maybe quickly tempered. Similarly, silver could confirm resistance around $25.30-$25.45 in the very short term. Platinum bears have pushed the metal back down into the $1035-$1065 range, where bulls will need to regroup for a chance at pushing higher.
The main event this week is Wednesday’s FOMC meeting. With a 25bp rate hike priced into markets, participants attention will be focused on any future guidance regarding monetary policy; trader’s should brace for more volatility still. Stocks have been moving sideways downward since the fed turned hawkish in December 2021; it is plausible that equities have a trigger for an upward relief rally, at the least, once the hike is concretely executed.
Thanks and have a great week.