Precious metals, especially gold and silver, have held key support levels all week as rising tensions between Russia and Ukraine has brought us an increase in global physical demand while paper traders with short positions have likely bought some of those positions back.
Yesterday’s early morning short covering rally which may have been caused in part by discord within the French government was short lived
Yesterday continued the recent run of better than expected U.S. economic data in the U.S., which kept a lid on gold and silver after both held support levels following the sharp sell-off.
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.