Gold and Silver Look Weary, Dollar Needs To Continue Lower

New York (May 23)  Gold is beginning to show signs of weariness. The dollar has stabilized and although the administration’s goals may be delayed because of the Russian probe, physical off-take remains weak in North America. The key catalyst will be the June Fed meeting, but that is also days away. The short term will be predicated on the dollar and equity values.

From a technical perspective, gold needs to close above the $1,265 level to encourage further participation from funds, with the $1,245 level indicating relative support. Silver has seen an increase in buying activity, after the break above $17, but momentum needs to clear the $17.22 hurdle to bring in a $17.55 initial target. Long-term investors are buying physical, as current premiums for silver bars and coins remain at historic lows.

Source: KitcoNews