by Alasdair MacLeod
In the run up to Easter, trading in markets generally has become both volatile and thin.
It is usual in these conditions for negative factors to recede from traders’ minds, and so we have seen continuing strength in equities, and a resurgence in confidence in the dollar after its recent weakness. Most vulnerable have been precious metals on the back of a stronger dollar, and also sterling, where the excuse for selling is opinion polls suggesting Brexit is more likely. In short, Easter is a period of unpredictable price moves in thin trade, similar to the period between Christmas and New Year.
Next week also has the capacity to be divorced from risk fundamentals, with Easter Monday a further holiday for many. The decline in precious metal prices seen this week may well extend into next, and it would be brave to dismiss the possibility of prices for gold and silver drifting lower, with gold perhaps testing the $1200 level, and silver maybe retracing back to $14.80.