Gold and Silver finished the session higher on mostly short covering during overnight trading hours. The firing of the FBI Director by the Trump administration was most likely the cause as it spread thoughts of the administration in disarray with many pundits crying foul over the timing of the decision. However gold and silver pulled back near the close to show modest gains for the session and far from intraday highs. Both metals exhibited inverse reactions to what was happening in the Dow and S&P. As indices recovered from early morning losses, metals sold off. The bulls had to be disappointed in the late session weakness with June Gold settling below 1220.0 and July Silver below 16.25. I have consistently said that the precious metal bulls need to be continuously fed bullish news or the unwind of long positions will continue in the short term. Whether this FBI firing emerges to bring about further political infighting that withdrawals activity on passage for health care and corporate tax legislation before summer remains to be seen. The reaction in equities going forward will be paramount regarding price action in gold. This again assumes nothing else erupts geo-politically. Rumors were also swirling that North Korea was set for another missile launch but for now there has been no activity from the rogue nation. Its been quiet on the economic release front so far this week. However, there are some releases that bear attention the next few days. Thursday we have jobless claims and PPI, and on Friday we have CPI, real earnings, and retail sales to be released. Everything else aside, thoughts of a June rate hike continue to underpin the Dollar while keeping pressure on the metals.
Technical levels for the remainder of the week comes in as follows. June gold has first support at 1210.8 and below there at 1194.9. Resistance sits up at 1241.6 and then 1257.5. For July Silver, support sits down at 15.89 and below there at 15.51. Resistance is up at 16.59 and then up at 16.97.