The precious metals of Gold and Silver saw net May declines of -$17.00 (0.8%) to
$1982.10, and -$1.64
$23.59 respectively. Monthly momentum remains positive, but the two concerns should be further dollar upside and higher bond yields.
Gold: printing a new multi-month high of the $2085s, if cooling back to settle in the $1982s. Price momentum was positive for a third month. The May candle is spiky on the upper side, we've have a higher high... but a lower low. Next upside resistance is the Aug'2020 historic high of the $2089s. Any price action >2100, would offer the 2400/2500 zone.
Any further upside in the dollar won't help, nor would any further rate hikes.
Silver: printing $26.43, if cooling back to settle at $23.59. Momentum was net positive for a third month. I would note the monthly 10MA at $21.97, which silver settled above.
A key threat to silver, will be if the main
market sees renewed downside. A further downward pressure will be
if the dollar continues to re-strengthen.
Of the two metals, I favour Gold, especially for a potential geo-political 'fear bid'. I'd accept silver has massively more upside potential than gold, but many have been saying that since the $49s of 2011.
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