PRECIOUS METALS RECAP 5/17/2012

June Gold closed up 37.2 at 1573.8. This was 35.4 up from the low and 6 off the high.

July Silver finished up 0.824 at 28.02, 0.275 off the high and 0.54 up from the low.

Given the magnitude of the bounce in gold prices this morning, it would seem like the trade moved to increase its US easing expectations or perhaps the buyers of gold and silver were simply pricing in a noted turn for the worse in the Greek or Spain situation. More than likely the gold market was lifted by fresh easing hopes, as the US scheduled data today was patently weaker than initial expectations. As suggested in the mid day coverage, the real upward action seemed to come in relative proximity to the release of the disappointment in the Philly Fed readings. It should be noted that gold initially managed its recovery effort in the face of ongoing strength in the Dollar and weakness in US equities.

July silver managed a low to high morning bounce in excess of $1.00 per ounce today. With the market managing the recovery in the wake of nearly a clean sweep of soft US data, it sure seemed like fresh Fed quantitative easing hopes were the inspiration for the bull camp. Seeing US Note yields return to the vicinity of record low levels, might have lent some support to silver and gold prices today but the market recently hasn't exactly garnered lift from falling interest rate news.

COMEX SILVER (JUL) 05/18/2012: The near-term upside target is at 2895.0. The next area of resistance is around 2852.0 and 2895.0, while 1st support hits today at 2747.0 and below there at 2677.0.

COMEX GOLD (JUN) 05/18/2012: The near-term upside objective is at 1607.2. The next area of resistance is around 1594.0 and 1607.2, while 1st support hits today at 1553.5 and below there at 1525.5.