Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Precious Metals Power Higher after US Imposes Sanctions on Russia
April 15, 2021 - (Gold Market Wire) - The United States decision to impose new sanctions on Russia has lifted the Precious Metals markets out of their recent doldrums. Gold and Silver are now trading over 1% higher on the day. The new round of sanctions from Washington will see American banks being prohibited from purchasing Russian sovereign debt and will go into effect with bonds issued after June 14. Additionally, the United States is expelling ten Russian diplomats from its Embassy in Washington D.C. Russian retaliation will be a quid pro quo, as protocol demands.
Silver and Gold have moved higher on the news. While we are never one to chase news related movements, it must be recognized that such a move puts the international political dimension into a new arena. We have been anticipating a rally for some days, and now we have it. Our updated chart reveals the new trend line.
We may yet settle down after the impact of the news wears off. We will look to see how the 100-day moving average holds going into the close today, and especially tomorrow, but we would be foolish to dismiss this as a weekend in which people will want to be short Silver. That could leave the bulls in charge by default.
Pullbacks should be bought. It is likely that the lows are in.