Wednesday, 23 May 2012

PRECIOUS METALS RECAP 5/22/2012



June Gold closed down 19.4 at 1569.3. This was 8.3 up from the low and 25.1 off the high.
July Silver finished down 0.142 at 28.179, 0.596 off the high and 0.084 up from the low.
The gold market managed to throw off early pressure as prices managed to recover into mid morning but then the market saw its bullish resolve partially weaken through mid session. Strength in the dollar and weakness in the Euro might have limited gold and other physical commodity markets today, as concern toward the Euro zone situation generally remained in place today despite the impending EU summit directly ahead. Some traders suggest that the EU needs to come forth with something significant in order to restore confidence and right now that something would seem to be taking the form of a Euro Bond. Seeing the Euro come under fresh pressure today would seem to suggest that the trade has to see proof of credible action before putting a positive spin on the European debt crisis.
The silver market today forged a lower high and a lower low on the charts and that probably gives the bear camp some fresh technical confidence. With US scheduled data mixed today and the European situation in limbo into the EU summit it wasn't surprising to see silver and other physical commodity markets fall back on their charts. About the only positive for silver today was periodic strength in US equities but even that potentially supportive development was countervailed by adverse currency market action.
COMEX SILVER (JUL) 05/23/2012: The next upside objective is 2907.0. The next area of resistance is around 2855.0 and 2907.0, while 1st support hits today at 2777.0 and below there at 2745.0.
COMEX GOLD (JUN) 05/23/2012: The next upside objective is 1606.2. The next area of resistance is around 1585.3 and 1606.2, while 1st support hits today at 1552.8 and below there at 1540.5.

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