Precious metals regain some poise after sharp drop earlier within the day

The market mood is keeping steadier in European morning trade with equities holding calmer while precious metals are bouncing back quite modestly on the day. Of note, silver is down just 2% now in climbing back above $91 and that is well off the earlier low of $86.42 in Asia trading. The volatile swings are continuing on the day.

There’s not much in terms of headlines to drive the rebound, with it looking to be dip buyers stepping back in after some profit-taking from before.

The near 8% drop at the lows today points to the fact that it is really like the wild, wild west out there. It is the fact when there is a retracement/pullback, it can get quite violent. So, just be cautious when you’re engaging at the highs here.

But as evident from the near-term chart above, even that near 8% drop doesn’t look like much when weighing up the run higher since the turn of the year.

Elsewhere, gold is also steadying itself in a climb back above $4,600 to $4,617 now – down just 0.1% on the day. The low for gold earlier was $4,581 as the decline was a bit more measured as compared to the silver drop. That is something that was alluded to yesterday here in this post: When will the silver rally prove too hot to handle?

For now, buyers continue to keep in near-term control despite the more volatile mix. And with all the fundamentals already laid out on the ground for all to see, the only thing left to scrutinise is price action itself and using the technicals as a guide to any material shifts in the momentum play for precious metals. That will be part of the playbook until we get to the weekend it would seem.