Precious metals hit best mark in a decade as EU stimulus moves all markets, reports Ashraf Laidi.

Gold and silver are both heading for their best four months in 10 years. Not only both metals are up for the fourth straight month, but both are showing the highest cumulative gains since 2010. Less than 24 hours after we pointed out the technical breakdown in Gold/Silver ratio here, silver finally broke above the $21 level, taking gold with it to $1,841. 

The EU finally agreed on finalizing its historic stimulus package at €750 billion ($864 billion), with €390 billion in grants and €360 billion in loans. EURUSD pulled back for a brief sell-the-fact before regaining 1.1490s. The British pound/U.S. dollar pair (GBPUSD) broke above the 200-day moving average as well as a seven-month trendline resistance, while the U.S. Dollar Index deepened the breakdown below its 200-week moving average. 

U.S. Crude oil climbed to $42, finally closing the March 6 to March 9 gap when oil plunged 40% as a result of that fateful Saudi weekend decision to abandon OPEC+ supply cuts. U.S. Crude is less than $1 away from its 200-day moving average. 

The Dow Jones Index, currently 3% above its 200-day moving average, faces its next crucial resistance level at 27150/80, with further upside seen if crude oil closes above $42. The S&P 500, currently 8% above its 200-day moving average is far from filling the Feb gap, highlighted by the 3335-3269.

Italy, the biggest gainer of the EU package will get over €200 billion with as much as €80 billion in grants and Greece gets over €30 billion total. This is further narrowing Italian bond spreads and fortifying EUR crosses.  

You can see Ashraf’s daily analysis at www.AshrafLaidi.com and sign up for the Premium Insights. Ashraf discussed Trends in Yield Differentials  at the TradersEXPO New York on March 8.