Putin’s Comments Trigger Flight From Metals

Published 03/11/2022, 10:09 AM
Updated 07/09/2023, 06:31 AM

Putin's comment earlier this morning about positive movement in talks with Ukraine triggered a flight out of the commodity and precious metals markets. In April, gold is down about $33 to $1966, amounting to a 5.5% correction from Tuesday's (3/08) high at $2078.80. 

Let's notice on the chart below that gold has declined right into important support represented by the sharply up-sloping 10 and 17 DMA's, now at $1966 and $1939, respectively. This level MUST contain further weakness to preserve the otherwise still bullish pattern caved out off of the 12/15/21 pivot low at $1755.30.

Gold Daily Chart

As long as April's gold weakness is contained in or above $1939-$1966 support, my pattern work argues for another upleg to a higher-high, projected into the $2100-$2120 area next.

It will be interesting to see where April gold finds buying interest next, especially if the actual shooting stops in the Russia-Ukraine War. That level-- where new buyers step in-- will provide clues about the gold price minus the geopolitical risk-premium and where inflation, growth, and Fed policy become the dominant input factors once again.

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