Precious Metals Market Comments

Today's June Gold futures traded a $17.30 range including a new weekly high of $1668.80.

This week the gold market covered a $44.80 trading range that was technical, choppy, and volatile especially Wednesday after the FOMC released their statement...

Today's gold market rally was supported by a weaker U.S Dollar as the Bank of Japan announced more monetary easing measures. Higher Crude Oil prices also were bullish for the precious metals as June Crude Oil futures traded as high as $104.97 per barrel today.

The physical demand for precious metals remains sluggish and has tailed off even more since the end of India's Akshaya Tritiya festival on Tuesday. Akshaya Tritiya is India's second biggest gold buying festival after Dhanteras and failed to attract the usual massive gold buying this year.

India's consumers are coping with higher living expenses along with the high price of gold as curbed the normally insatiable appeal for the yellow metal. Historically and traditionally gold has long been the gift of choice at weddings and festivals.

The next wave of wedding and festival gold buying will begin in September we'll have to wait and see if the consumers of India regain their appetite for the precious metals. After all India is the world's largest consumer of gold.

Weekly News:

Thursday:

Thursday's June Gold futures traded a bullish $19.50 range as a weaker U.S Dollar, short covering, and some bargain price buying helped to fuel the rally in the precious metals today.

Once again the Initial Jobless Claims data was worse than projected. The U.S Department of Labor released 388,000 initial claims worse than the 375,000 that was predicted.

The precious metals also benefited from higher Crude Oil prices as the June Crude Oil futures traded as high as $104.92 a barrel today. Technically the Gold broke through some key resistance levels including the $1450.00 & $1460.00 levels while closing just $1660.00 for the session. Traders will be eyeing on tomorrow's economic data before choosing their Friday trading strategies. So far we have had range of $38.40 from low to high. Today we traded as high as $1662.00 which is also the weekly high so far...

Wednesday:

Wednesday's June Gold futures traded a choppy and volatile $20.70 as FOMC comments once again are not what the bulls were looking for. The FOMC released a statement at 11; 30 am cst ...

The statement was almost exactly the same as they issued in March. (See highlights below)

•  Fed says U.S Economy is expanding moderately...
•  Housing sector remains depressed...
•  Low interest rates through 2014...
•  Inflation has risen slightly due to higher energy prices...
•  Labor market has show improvement in recent months...

The June gold futures was trading around the $1640 level at the time of the FOMC's statement release. And with no mention once again about a QE 3 or the possibility of more stimulus the Gold market tanked and traded as low as $1625.00 5 minutes after the Fed's statement.

Evidently traders and investors saw last month's Jobs data as a sign of a slowing economy.

The Gold market did however make a miraculous comeback the last hour of the day session to close $1.50 lower for the day...

The demand for physical has been sluggish and has not been an underlying support recently.

The market has been trading above and below the $1640.00 level seemingly forever...

Traders have been using the $1640 level as a psychological pivot level....

Tuesday:

Today's June Gold futures traded a quiet $15.50 range on fairly light volume as traders may be awaiting news statements from the FOMC's two day meeting which will conclude tomorrow..

The last several times Fed Chairman Ben Bernanke has spoke he has single handedly crushed the precious metals and I believe his recent record is fresh in the minds of the gold bugs

Gold traders may be waiting until after the FOMC convenes prior to choosing their trading strategies

.

Today's price rally can be attributed to a weaker U.S. Dollar along with bad news from the housing sector. The S&P/ Case-Schiller home price index revealed that U.S Home prices dropped sharply in February to its lowest level in 10 years...

ECONOMIC DATA: 4/30

Personal Income...........7:30 am cst.

MY SWING NUMBERS 4/30

JUNE GOLD

RESISTANCE # 2.........$1678.00

RESISTANCE # 1.........$1671.00

PIVOT........................$1661.00

SUPPORT # 1..............$1655.00

SUPPORT # 2..............$1644.00

VOLUME.....................130,000

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