Precious Metals driven lower
Today, data was released showing that April sales at U.S. retailers dramatically increased for a second straight month. This suggests the economy is accelerating after a slow start to the year. Also, the Empire State Manufacturing Index rose in May, pointing to an improving economy. While there are no signs of overheating, analysts/economists are concerned that the Federal Reserve may try to slow down the economy by raising interest rates more aggressively. This information caused the U.S. Dollar Index to raise above 93 (2018 high) and the 10-year Treasury to move firmly above 3%, driving precious metals lower.
Gold broke down below the key $1,300 per ounce level, reaching a low of $1,289.50 before finding buyers. Gold needs to break back above the $1,300 level quickly, or it is likely to test the $1,280 support level. At 11am PDT today, Gold is trading at $1,291 per ounce, down $27 on heavy volume.
Gold led Silver lower, reaching a low of $16.16 before sizeable buying appeared. If Gold reaches the important $1,280 level, Silver will test the $16 support level. At 11am PDT today, Silver is down $0.34 per ounce, trading at $16.30 per ounce on heavy volume.