Gold Charts Signal A Breakout

Cassie Bastien

5/23/2017 11:04:18 AM

Daily Gold & Silver Market Report – 05/23/2017

CNBC Senior Producer Gina Francolla and News Associate Fred Imbert said spot Gold prices are up almost 10 percent in 2017 and after Monday's reports, analysts say the yellow metal could be “primed for more gains.” To break this down, Gold prices saw a small gain, “enough to push the metal's 50-day moving average price above the average price of the last 200 days,” also known by technical analysts as a golden cross. Francolla and Imbert said Gold is “outperforming the S&P 500 index, which is up more than 6.5 percent, as investors hedge against the possibility that the [President Donald] Trump administration does not succeed in pushing through its pro-growth agenda.” Chris Kimble, founder of Kimble Charting Solutions, said in a note that pennant patterns, which frustrate both bulls and bears, “don't suggest which direction any asset will take. They do historically suggest that when the breakout/breakdown takes place, it is usually a big one.”

Silver Prices Hit 3-Week High

While the U.S. dollar saw its lowest euro value since last November amid fresh political turmoil around President Trump, Silver prices managed to hit three-week highs Monday morning, said Steffen Grosshauser at BullionVault. Australia and New Zealand Bank Group (ANZ) Commodity Strategist Daniel Hynes said although, “The $1,300 [per ounce] level is within reach” in the second half of 2017, “fundamentally, we remain bearish on the yellow metal, underpinned by two more rate hikes by the U.S. central bank in 2017.” Singapore-listed bank OCBC Analyst Barnabas Gan suggested rising interest rates imply a higher opportunity cost of holding bullion like Gold and Silver.

• Silver prices jumped 1.2 percent at the start of Asian trade, dropping back only to reach $17.08 per ounce again at lunchtime in London.

Trump’s 2018 Budget Puts Tax Reform in Jeopardy

Forbes Contributor Stan Collender said, “The Trump fiscal 2018 budget that was released [Monday] night was a huge missed opportunity by the administration to switch from campaigning to governing. ... Not only does it make zero effort to broaden interest in and support for the president's program, but the budget's extremely harsh spending cuts are almost certain to make opposition from both Democrats and moderate Republicans much, much easier.” Nonetheless, Collender is confident that even if the House managed to adopt a resolution with such extreme proposals, enough Senate Republicans and all Senate Democrats will surely be opposed, making Senate passage impossible.

At 12:04 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,258.70 Down $5.50
• Silver, $17.23 Down $0.06
• Platinum, $952.60 Down $0.20
• Palladium, $773.10 Up $10.00

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