Precious metals continue to shine amid heightened geopolitical risks concerning Ukraine, a struggling global stock market and soaring inflation. Inflation is also helping to keep real bond yields in the negative territory, making the non-interest-bearing gold and silver attractive on a relative basis for yield-seekers.
Gold had already been showing strength amid haven flows in recent days, extending its good run of form from the start of the month when inflation concerns intensified. Silver has also been rising along with gold, albeit a little stealthier as it didn’t break any major levels… until today:
Source: ThinkMarkets and TradingView.com
The “poor man’s gold” had been unable to take out its 200-day moving average on several occasions in recent past. But today, it has made a more decisive move. A close above here would pave the way for a potential rally to $25.00 next. But there’s the potential for a much larger move, given the current macro backdrop.
