Gold and silver rise sharply on safe-haven purchases and inflation concerns

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(Kitco News) – Gold and silver prices are markedly higher in midday US trade on Thursday as safe-haven demand comes amid market risk aversion remaining elevated amid the Russia-Ukraine war. Strong gains in crude oil prices this week are also bullish for metals markets, despite oil prices pulling back today. April gold futures were up $26.70 at $1964.00 and May Comex silver futures were up $0.736 at $25.925 an ounce.

The war between Russia and Ukraine and its widespread market implications continue to be on the front lines. President Biden will meet with NATO and EU leaders on Thursday to discuss the war. The two-day summit will take place at NATO headquarters in Brussels.

Some reports are emerging that Russian President Putin’s war is causing cracks in the Kremlin. Reports say that the head of the Russian central bank has resigned and left the country, while another official wanted to resign, but was not allowed by Putin.

Reports said Russia’s stock market partially reopened and was trading higher, but foreigners were banned from selling.

The other element that impacts the market is inflation, which has intensified due to the war. Rising inflation is historically bullish for metals markets. Global bond market yields have been rising sharply recently, with US Treasury yields nearing three-year highs. The US 2-year and 10-year yield curve is very close to inverting, which would start to suggest a US economic downturn.




Key outside markets see Nymex Crude Oil prices down and trading around $112.00 per barrel. The US dollar index is firmer today. The benchmark 10-year US Treasury bond is currently yielding 2.3%.

24 hour live gold chart [Kitco Inc.]

Technically, April gold futures prices hit a two-week high today and experienced a breakout to the upside from the recent trading range sideways. The bulls have the overall strong short-term technical advantage. The next bullish price objective for the Bulls is to produce a close above solid resistance at $2,000.00. The bears’ next short-term downside price objective is to push futures prices below solid technical support at the March low of $1,895.20. The first resistance is seen at $1,976.50 and then at $1,985.00. First support is seen at today’s low of $1,937.40 and then $1,925.00. Wyckoff Market Rating: 7.0

24 hour live silver chart [ Kitco Inc. ]

May silver futures prices hit a two-week high. Silver bulls have the overall strong short-term technical advantage. The next bullish price objective for the Silver Bulls is to close prices above solid technical resistance at the March high of $27,495 an ounce. The next downside price objective for the bears is to close prices below the solid support at $24.55. The first resistance is seen at today’s high of $26.16 and then at $26.50. The next support is seen at $25.50 and then today’s low of $25.17. Wyckoff Market Rating: 7.0.

May NY copper closed today 135 points at 476.30 cents. Prices closed closer to today’s session low after hitting a three-week high earlier. Copper bulls have the overall short-term technical advantage. The next upside price objective for the copper bulls is to push and close prices above the solid technical resistance at 500.00 cents. The next downside price objective for the bears is to close prices below solid technical support at the March low of 446.85 cents. First resistance is seen at today’s high of 481.75 cents and then 490.00 cents. First support is seen at 470.00 cents and then this week’s low of 465.60 cents. Wyckoff Market Rating: 7.0.



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has gone to great lengths to ensure the accuracy of the 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 of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage arising from the use of this publication.

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