Gold & Silver Test Key Support And Resistance Levels Again

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	Inflation Hits 40-Year High As CPI Rises 8.6% In May
	U.S. consumer prices accelerated in May at the fastest rate since 1981 . . . . Alexandra Semenova
	Strong Institutional Demand Drives Gold Demand in Q1
	At the end of April, the World Gold Council published our first quarter Gold Demand Trends report, which showed . . . . Andrew Naylor , World Gold Council
	Egypt Tops Central Bank Gold Purchases So Far In 2022
	Gold holdings of central banks expanded in April by 19.4 tons, driven primarily by purchases . . . . Cleofe Maceda
	Bankrupt Northwest Territorial Mint Defrauds 3,000 Clients For $30 Million
	The former President & CEO of Northwest Territorial Mint, a now-bankrupt company dealing in precious metals . . . . Department of Justice
	Gold Bulls Return with A Vengeance
	Gold Price soared to its highest in nearly a month, holding near a daily top . . . . Premium ANALYSIS

I returned from my European vacation on Friday to an exciting precious metal market. On last Friday, the May CPI inflation numbers were released early in the morning. That number showed a 8.6% inflationary increase, the highest increase in over 39 years. This news caused the Gold price to initially drop $26, to $1,824 per ounce, because of concerns that the higher inflation rate would drive the Federal Reserve to continue increasing interest rates.

On Friday, after Gold reached the low of $1,824, the trading volume picked up and the price quickly started to rally higher. When Gold broke above the key $1,850 level, trading volume in the U.S. picked up to the highest level in months, over 400,000 100-Ounce Gold contracts. Gold closed last Friday at $1,874 per ounce, up $50 from the day’s low and up $23 for the day.

What is truly incredible about Friday’s Gold trading is that it happened in the face of the 10-Year Treasury interest rate reaching a 10 year high of 3.16%, and a rally in the U.S. Dollar, which reached a 20 year high of 104.23. As I have shared numerous times, higher interest rates and U.S. Dollar value are normally very negative for Gold priced in U.S. Dollars. A break in the current interest rates and the U.S. Dollar rally would be very positive for Gold, however a continued upward rally would be very negative for Gold.

Today: This morning, both U.S. interest rates and the Dollar continued to rally higher. A 5% increase in the U.S. 10-Year Treasury interest rate, taking it to over 3.35%, has caused a major sell-off in the financial markets. Equity, Bonds and Bitcoin sold-off, and the Gold price reached $1,820, a key support level. A rally to 1.05 for the U.S. Dollar Index also fueled the down move in financials and the Gold price. I would expect to see strong support for the Gold price in the $1,820 level.

Silver also dropped last Friday on the inflationary news, reaching a low of $21.35 per ounce before the rally started. Lead by the surge in the Gold price, Silver moved to the key $22 level, a $0.65 increase from the low, before seeing some light profit taking. Silver closed the week at $21.91 per ounce, up only $0.02 for the week. The Silver-To-Gold ratio remains at the unbelievable level of 86-to-1.

Today: Silver followed the Gold price lower this morning. Based on the sharp increase in interest rates and the U.S. Dollar, silver tested its key support level of $21 per ounce today. Holding above the key $21 price level is important to the short-term direction of the silver price.

Recent auctions and trade shows continue to show strength and heavy demand for many of the popular certified U.S. Gold and Silver coins that are priced over $10,000 with populations under 100. Prices on these rare coins have shown excellent increases as dealers, collectors, and investors aggressively bid at recent auctions. As we roll into the summer months, I hope the competitive bidding will slow down, allowing me to build up an inventory for many of my collectors looking to fill their want list.