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Contributed Commentaries

Volatility slowing : What's next?

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

Gold continues to hold steady this morning on what is a major option expirations day, market wide. It would continue to be short-term bullish for the complex should the yellow metal realize a weekly close today, over yesterday's high of $1950. Bulls will look to protect support at around $1915 in a downside scenario. Platinum got back to over $1035 overnight while palladium has followed through higher, bringing bulls further relief, as suggested yesterday morning.

The USD index found support overnight as well and rallied, putting on 0.5%. This may be putting pressure on the metals and stocks in early trading today. After a three-day rally from the bottom with the rate hike in between, it would not be surprising to see equity indices exhale today. The US 10 year yield has floated over 2% for the better part of this week in a stable fashion, which may be a sign that fear has genuinely begun to subside.

With a slew of triggers for further volatility still hanging over-head and at the forefront of market participants' minds, price action heading into the close may reveal the extent to which headline-driven angst is present, escalating, or waning.

Thanks, and have a wonderful weekend!

By Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
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.