Silver heads back to $25/oz after upside levels are rejected

LONDON (Apr 12)  Heading into the European session this morning both gold and silver were trading higher. Subsequently, the precious metal complex hit some weakness and now prices have moved back toward the mean. In terms of the fundamental backdrop, the Russia/Ukraine conflict seems to be escalating. There is now an investigation taking place to see if Russia used chemical weapons in the Ukrainian city of Mariupol. In theory, this would support the gold/silver price but yields have been climbing lately and heads could have been turned to the fixed income space. The risk space has taken a hit and the German ZEW and CPI data didn't really do anything to inspire the bulls here in Europe.

Looking at the technicals, the 4-hour price chart below shows the price has moved back into more familiar territory. This is represented by the price going back into the value area from the volume profile indicator. There are a few support zones to look out for in the afternoon. The orange level close to $25.70/oz and the consolidation low at $24.04/oz.

KITCO