Gold begins week on quiet note after last week’s sharp increase
Managed money piles into the yellow metal

(USAGOLD – 2/21/2022) – Gold is beginning the week on a quiet note after last week’s sharp move to the upside driven by inflation concerns and Russia’s threatened invasion of Ukraine. It is level this morning at $1899. Silver is down 11¢ at $23.89. Both metals are challenging important psychological barriers at $1900 and $24. Increased fund and institutional interest though might provide the impetus needed for a breakthrough.

“Managed funds,” says London’s City Index this morning, “piled into the yellow metal and were their most bullish on it in three-months but, looking at how prices rallied into the weekend, we strongly suspect net-long exposure is actually much higher than the delayed COT data suggests. The biggest threat to gold prices right now is a Russian retreat. And as that doesn’t look very likely then we expect dips to be bought and for an eventual break above 1900.”

Cartoon courtesy of MichaelPRameriez.com