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Metals extend the consolidation

Commentaries & Views

Gold is trading down to $1,935, as stipulated would occur with a failure to hold $1,950. Silver is offered above $25 this morning, even in the face of a strengthening gold to silver ratio, a positive sign for the short term. Platinum bulls failed at $1,035 and are supporting the price at $1,000 again.

The USD caught another bid overnight which is undoubtedly affecting the metals today thus far. Stock futures are pointing to yet another flat to green open this morning as well. The combination of a strong dollar and stock market resilience in the face of rising rates may remove some of the fear-driven impetus traders had to seek refuge in gold; of course, multiple catalysts remain in play for a violent reversion.

A question traders may want to consider is; whether FOMO on a rally to all-time highs in stock indexes in the short term is greater than fear of economic contraction, and the effects of sustained conflict in the medium to long term.

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.