Gold Prices Drop From 3-Week High

Cassie Bastien

5/24/2017 9:57:27 AM

Daily Gold & Silver Market Report – 05/24/2017

With the U.S. dollar finding support on a weakened euro following a suspected terror attack in England, Precious Metal prices settled lower Tuesday, with Gold retreating from its three-week high. Financial markets were cautious following the apparent suicide bombing at a concert venue in Manchester. Still, Silver and Gold rates continue looking for clues regarding an interest rate hike next month. Bill Baruch, chief market strategist at iiTRADER, told MarketWatch, “This is a sell opportunity in Gold. It is beginning to stall and with a June rate hike probability just under 80 percent. ... I think Gold will stay contained into the June [Federal Reserve] meeting and a tremendous buy opportunity after.” MarketWatch Markets Reporter Myra P. Saefong and News Editor Rachel Koning-Beals said, “Minutes from the Fed’s most recent meeting will be released Wednesday at 2 p.m. (ET), which may deliver more guidance on the central bank’s plans to engineer another interest-rate hike at its policy meeting June 13-14.”

U.S. Dollar Index is Prepping Silver Rates for Enormous Rally

Analyst Hubert Moolman with SilverSeek.com suggests Silver prices could rally, similar to the late 70s. After comparing charts over the period of the first phase of the 70s Silver bull market and the current era (2001 to 2017), Moolman believes “the U.S. dollar index will fall significantly during the coming months.” He continues, explaining, “a meaningful Silver rally is dependent on whether the March 2017 peak is the actual peak for the [Dow Jones industrial average]. If it is not, then we will have to wait longer.”

President Trump Wants to Sell Half of Oil Reserve

As CNN Money reporter Matt Egan explains, “Except for the fact that the sale would be done over time, little is known about the exact timing” of President Donald Trump's desire to sell off half the oil currently held in the strategic reserve, a complex of tanks and deep underground storage. Egan said, “Trump's fiscal 2018 budget estimates it would generate roughly $16.6 billion over the next decade. It's true that the U.S. shale oil boom has dramatically altered the global energy landscape, turning America into a leading producer and reducing dependence on imports.” However, that same surge also produced an excess that the Organization of Petroleum Exporting Countries is still fighting to clear. Some energy analysts warn that selling half the strategic petroleum reserve (SPR) could backfire. Carl Evans, senior crude oil analyst at energy market research firm Genscape, said, “It's a bit concerning. You're reducing the government's budget deficit, but you're putting more risk onto the consumer. That's who is going to pay for it.” Congress recently agreed to oil reserve reductions that would remove more than 150 million barrels from the SPR. It is unclear if Trump's planned 50 percent takes those agreements into consideration. On the other end, Egan says some analysts believe “now is the perfect time to unload some of the strategic oil reserve, especially because there are costs linked to maintaining this complex that is located in Texas and Louisiana.”

At 10:57 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,255.40 Down $2.90
• Silver, $17.18 Down $0.06
• Platinum, $948.90 Down $3.00
• Palladium, $765.30 Down $11.10

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