Gold/Silver: PMI Data Sets The Stage For Today

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Looking at the precious metal performance in the week

Platinum +3.5
Silver +3.3%
Gold + 1%
Copper Unch

A few observations from yesterday’s trading action

Silver caught a bid out of the gate, and other metals struggled to react until after the initial claims data indicated another uptick, with 238k vs. 235k expected. At the same time, we saw declining manufacturing activity from the Philly Fed Manufacturing index. 

Expectations for multiple interest rate cuts in 2024 continue to grow. 

Today, we will see both the Flash Manufacturing PMI data and the Flash Service PMI. Expectations are for a slight decline from last month’s reading. Traders will want to monitor fluctuations in the Gold market, as last month’s uptick dashed all hopes of an early interest rate cut, and Gold declined $51 in the session. 

Levels to Watch

Gold continues to chew through the June 7th $65 sell-off and has traded back up to the 50 DMA at $2372. The “line in the sand”  for long-term traders stands at $2300. The Bulls will want to see a close over $2397 to spark hopes of another run to all-time highs. 

• Stochastics continue to show positive momentum, while the average true range has declined to $34/day.
• Goldman lifted its year-end price target to $2700/oz, about a 15% increase from here.
• On Thursday, Silver rallied an impressive $1.24; a close over $31.20
• opens the door for a more significant breakout led by momentum traders.
• Volatility, as measured by the average true range, sits at $1.02.

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