Strong Economic Indicators Putting Pressure On Gold And Silver Prices

GOLD

Today, the Gold price rallied during Asian and European overnight trading, reaching a high of $1,931 per ounce before the U.S. market opened. When U.S. trading started, May’s durable goods orders were released showing an increase of 1.7%. The market was expecting to see a decline of 1%, and the financial markets reacted. 10-Year Treasuries and the U.S. Dollar quickly rallied higher and precious metals headed south.

Today, the Conference Board said its consumer confidence index rose to 109.7 in June, up from May’s reading at 102.5. The data significantly beat expectations as economists were looking for a reading of around 103.9.

The above positive economic indicators make it highly likely that the Federal Reserve will raise the Fed Funds rate in July and that is putting pressure on the Gold price. At 11am PT today, Gold is trading at $1,915 per ounce, down $9 on normal volume.

SILVER

Silver moved above the key $23 per ounce resistance level in early European trading today. Silver reached a high of $23.18 before U.S. markets open and quickly moved lower with Gold. Silver found excellent support from bargain buyers at $22.73 and moved higher. At 11am PT today, Silver is up $0.04 per ounce, trading at $22.88 on normal volume.