Tuesday 31 May 2022

Precious metals continue to cool

The precious metals of Gold and Silver saw net May declines of -$63.30 (3.3%) to $1848.40, and -$1.40 (6.0%) to $21.69 respectively. Gold is maintaining some degree of 'fear bid' via geo-political tensions, whilst Silver is more adversely impacted by the m/t broken equity market.

Gold, monthly


Silver, monthly



Gold: printing $1785, but recovering to settle in the $1848s. Price momentum has stalled just under the key zero threshold. I would note the monthly 10MA at $1837, which was marginally settled below. Gold is holding some degree of 'fear bid' on Russia/Ukraine geo-political concerns. 

Next target is the Aug'2020 historic high of the $2089s. A push >2100 would offer a grander target of the 2400/2500 zone, but that won't be easy with a broadly strong dollar.

Silver: printing $20.42, but recovering to settle at $21.69. Momentum remains negative. I would note the monthly 10MA at $23.28, which silver settled decisvely below. Price action has been a broad chop fest since August 2020. Things turn decisive for the silver bulls, with a break AND hold above $25.50, but that looks difficult with the broken equity market, and the broadly strong dollar.

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