May 24th Market Update


Gold Tests $1,900 and Silver Stays Strong

Gold has started the week with little change and is hovering near a four-month high, around the $1,882 mark.

Gold is still enjoying support from a weaker dollar, inflation concerns, and large ETF inflows from many seeking relative stability compared to cryptocurrencies.
Currently, the U.S. Dollar Index (DXY) is close to a three-month low, near 89.8.

The Bitcoin sell-off resumed over the weekend, as it would briefly drop below $31,000. This would mark a 50% decline from recent highs. If this volatility persists, it would not be a huge surprise if many investors continue to favor less-risky assets such as gold.

Silver is currently trading near $27.80, which is not far from where it ended the week. Looking ahead, there are several scheduled events that investors may be eying.

New home sale data is set to be released on Tuesday. This may be important for American consumers, as Google reported that searches related to “housing market crash” were up by over 2,450% last month. This at least indicates that many Americans are fearful of more volatility within the housing market.

Friday’s release of U.S. core PCE inflation data is of interest for many, as inflation concerns seem to be growing.

As gold continues its climb towards resistance at $1,900, it makes sense that investors interested in gold are also monitoring Treasury yields, the U.S. Dollar Index, and inflation data throughout the week.

Silver is often supported by many of the same factors as gold. However, given its industrial use, silver can also gain support as electric vehicles, solar energy, and other initiatives continue.

Silver is up by over 6% this month and more than 55% since a year ago. So, while gold and silver bugs alike will have similar interests this week, silver investors are also aware of the potential for long-term support for industrial uses.

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