PRECIOUS METALS RECAP 5/23/2012

June Gold closed down 15.5 at 1561.1. This was 28.3 up from the low and 7.4 off the high.

July Silver finished down 0.66 at 27.519, 0.351 off the high and 0.439 up from the low.

The gold market managed to overcome early pressure as prices managed to recover a large portion of early losses by the close. Strength in the dollar and weakness in the Euro might have pressured gold and other physical commodity markets today, as concern toward the Euro zone situation generally remained in place in spite of today's EU summit meeting. Some traders suggest that the EU needs to produce something significant in order to restore confidence, with other traders waiting to see proof of credible action before putting a positive spin on the European debt crisis. In the end, the significant run up in Treasury prices seems to be signaling some type of major financial problems ahead.

The silver market was also able to make a substantial recovery from heavy early losses by the close. Escalating Euro zone concerns and adverse currency market action also served to pressure silver prices this morning, but it could take concerted central bank action now to effectively turn the tide in silver and other physical commodity markets. In retrospect, softer than expected US new home sales readings appeared to rekindle a broad based physical commodity market liquidation wave and kept prices on the defensive throughout the session.





COMEX SILVER (JUL) 05/24/2012: The near-term upside target is at 2873.0. The next area of resistance is around 2830.0 and 2873.0, while 1st support hits today at 2729.0 and below there at 2667.0.



COMEX GOLD (JUN) 05/24/2012: The near-term upside target is at 1590.8. The next area of resistance is around 1578.0 and 1590.8, while 1st support hits today at 1543.6 and below there at 1520.7.