Precious metals are continuing to feel the weight of yesterday’s hawkish FOMC minutes which showed that several committee members discussed the possibility of raising interest rates sooner than expected
Friday’s early sell-off in precious metals was somewhat short lived if only for gold and palladium, which reversed course on news that Ukrainian forces had attacked a Russian convoy.
Precious metals are limping to the finish line this week as technical factors outweigh geopolitical issues, which, while they have not gone away, have not escalated this week.
Precious metals continue to be range bound and although overall volume improved a bit yesterday gold and silver quickly backed away from resistance levels.
Precious metals, especially gold, were looking very steady and moving higher early yesterday morning, but the euphoria was short lived.
Precious metals begin the week in the U.S. with platinum and palladium moving higher, while gold and silver are unchanged but down from the Friday afternoon rally that followed the COMEX close.
Precious metals took it on the chin yesterday as a breach of nearby support levels saw long positions being liquidated while short sellers were likely initiating positions.
Precious metals are gravitating around yesterday’s settlement prices on light volume this morning as geopolitical events support prices, while decent global economic data pressure prices.
Precious metals are higher across the board this morning on light volume as geopolitical headlines continue to dictate price direction.
Yesterday’s events and the reactions of all markets have been well documented and highlight why investors flock to gold and precious metals during heightened geopolitical events.