Precious Metals Smoked Overnight! The Warning Signs

Overnight, the Precious Metals are getting hammered after yesterday’s weaker session.

Given the weakness in Copper, Gold, Platinum, and Palladium, I found Silver’s strength suspicious. Additionally, the U.S. Dollar posted its highest close in two weeks, while two-year yields threatened to break through 5%, and the Dow Jones slipped over 600+ points. Essentially, it was a “sea of red” and not your typical setup for higher Silver prices. If you are working closely with me, chances are you continue to reduce exposure.

By all means, I am not “bearish” on Silver; I find it prudent to call a “timeout” and reassess the situation. Futures trading is about efficiency, and we can get back in just as easy as it is to get out of a trade.

Data releases overnight from the Eurozone indicating a stronger labor market questions the possibility of a June ECB rate cut.

Today, the U.S. will release a flurry of economic data, including a second reading of first-quarter GDP, initial claims, and pending home sales. However, tomorrow’s PCE deflator gauge, the Fed’s preferred inflation metric, will be the big fireworks.

S&P Levels

• Traders will want to keep an eye on the two-day breakout in the Vix
• Resistance 5290-5300 (A close above 5300 is needed to reignite the bulls)
• First Support = 5250-5245
• Second Support 5210 (Critical long-term Support)

Copper – Back to Neutral Trend

• A Close above $4.87 is needed to bring the bulls back into the Market
• Pocket Support remains from $4.57-$4.49 (50 DMA)

Gold (August)

• Correcting below the 50-DMA (2349)
• The Chart pattern suggests consolidative, coiling action

Silver – Susceptible to a correction

• Critical Support is the May 24th low $30.23
• The Market will need a close above $32.55 to attract another wave of FOMO buying.

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