After nearly hitting a three week low June gold futures finished the day near unchanged at 1257.0. Today’s tight range of only $6.20 for June futures indicates that investors are faced with some major data points in the next few days and therefore are awaiting the results. The data points are highlighted by tomorrow’s FOMC rate decision and the non farm payroll number on Friday. No change is expected from the Fed concerning rates for tomorrow’s announcement. Investors rather will be most interested on when the Fed might tighten monetary policy for the second rate hike this year. Remarks on inflation, jobs, and economic growth could result in higher volatility for the remainder of the week. So far this week money flow into equities has been the theme as strong earnings results and low volatility are drawing money out of gold and silver and into stocks. Clearly, geo-political concerns have taken a short term back seat in investors minds as todays settlement in gold has the front month June contract down $11.00 for the week already. July silver futures finished lower for today which pushed its losing streak to twelve straight sessions. In that time, Silver which posted a new yearly 2017 high at 1865.5 on April 17th, has lost $185.50 per ounce or ten percent of value in a very short time. Needless to say the market is becoming oversold on the daily chart per the relative strength index. Funds are still carrying significant long metals positions into this week so some continued back and fill has occurred. Precious metal bulls need to hear dovish Fed commentary along with a tepid jobs report Friday to finish the week higher in my view.
Technical swing numbers for the remainder of the week come in as follows for both June Gold and July Silver. For June Gold, support comes in at 1250.3 and then down at 1241.6. Resistance is up at 1278.5 and then up at 1288.9. Fro July Silver support is at 1664.6 and then down at 1644.5. Resistance is up at 1695.2 and then up at 1749.1