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Brace for more volatility

Commentaries & Views

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.

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.