Daily Market Report 5/31/16

GOLD

During Asian trading this morning, Gold reached a low of $1,199 per ounce before attracting fresh buying and short covering. Gold quickly moved back up to the $1,217 per ounce level. At 11am PDT today, Gold is trading at $1,215 per ounce, up $3 on excellent volume.

A few positive U.S. economic indicators were released today:

1. U.S. consumer spending climbed 1% in April, the fastest pace in nearly seven years
2. U.S. personal income rose 0.4% in April
3. Case-Shiller reported that U.S. home price growth remained robust in March 2016

These bullish indicators would encourage the Federal Reserve to raise interest rates in June or July.

SILVER

Silver found a sizeable amount of bargain buyers this morning when it reached a low of $15.91, quickly rallying the price. Silver reached a high of $16.19 before settling back to $16.00. Silver needs to move above $16.20 to renew its bullish direction. At 11am PDT today, Silver is down $0.20 per ounce, trading at $16.00 on heavy volume.