June 1st Market Update
Gold and Silver Firm on Weaker Dollar
Our silver at spot deal is ending soon. Now is your time to buy Canadian Silver at the best possible price. Grow your silver stack today!
Gold and silver ended the month of May in positive territory. Both metals had support from several developments, not the least of which was a significant crypto sell-off, seemingly triggered by Elon Musk's tweets earlier in the month. Bitcoin had one of its worst months on record, down over 35% for May. Gold and silver saw inflows from investors seeking relative stability from volatility within the crypto market and those who continue to have inflation fears. In fact, net-long positions for gold have reached their highest points since January.
Currently, gold is still getting support from a weaker dollar. Spot gold is near $1,908 an ounce, up from about $1,898 on Friday. As of now, silver is near $28.33. This is a slight increase from Friday, but silver is still seemingly range-bound. With a shortened trading week due to Memorial Day, silver bulls may look to the dollar to see where silver may go next, as the pair carried somewhat of an inverse relationship throughout May. The U.S. Dollar Index (DXY) ended the month near 89.77, which would mark its second consecutive monthly decline.
It's clear to see that investors are closely monitoring the U.S. economic recovery and the implications of a continued economic opening coupled with a rising money supply. Near term, there are some scheduled events that traders will be eying. Jobs being a key indicator to a recovering economy, investors are standing by for the release of nonfarm payrolls, which is scheduled for Friday. Encouraging payroll data could be supportive of Treasury yields, which may not be positive for gold