Volatility slowing : What's next?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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!