Safe Haven Demonstration | Kitco News
Last night at 9:45 PM EST, as soon as gold peaked above $1915 again, the metals took off. Gold traded as high as $1925 before of the announcement of the invasion of Ukraine by Russia.
Above $1930, the door was open for November 20, 2020 and January 6, 2021, at a high of $1965. Gold hit $1,973 before falling back. 1955/$65 is where bulls should expect to act as resistance or support, going forward. Silver reached $25.60 before calming down and support may now be seen at the $25 level. The gold/silver ratio suggests that if the bullish momentum persists, a catch-up trade for silver remains firmly on the table. Unsurprisingly, palladium has been particularly high overnight, currently trading at over $2,600.
Equity futures are opening lower this morning, which traders should have expected as a distinct possibility after major indices broke their January 24th low earlier in the week. The fear in the market is palpable as the rush to safe havens has encompassed both the heavily bullish Dollar and the US Treasuries market; yields have fallen precipitously with the 10yr now at 1.86%. Contrarian stock bulls may continue to view this decline as a buying opportunity.
Traders should continue to expect outsized volatility with the release of US GDP data at 8:30 am EST.
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