Metals Minute: The Key Economic Indicator of the Week & What To Watch

Discover insider insights on your favorite Precious Metals, uncover overnight developments, and gain expert analysis on what to watch for every trading day.

Overnight, precious metals are stabilizing, after Friday’s bloodbath.

On Friday, the pressure from the stronger-than-expected PMI data caused a 4% sell-off in Silver, a 3% sell-off in Copper, and a 1.5% sell-off in Gold. In anticipation of this, many of you were able to reduce exposure on Thursday (how many times did I give you the warning), which allowed you to add exposure near the lows on Friday afternoon.

Despite the PMI uptick, the Global macroeconomic environment shows signs of weakening. I firmly believe that the Fed will make two cuts (in September and December), solidifying a bottom in many markets.

What to watch this week

• Consumer confidence is expected to be 100.2
  • (May 28, 102 vs 96 Exp) result May 28 – Gold up $27 (beige book release as well as other fed speakers)
• GDP
• Jobless claims (5 straight weeks of higher data) – If we see another aggressive uptick (5k or more), 10-year treasuries should see a break, leading to higher Gold prices.
• PCE – Fed’s preferred method of gaging inflation
  • Gas Prices – Will go through a seasonal adjustment
    • Shelter (higher)
    • Services, Goods, and discretionary spending (lower)

We expect PCE to continue progressing towards the Fed’s 2.0% target.

• We will also monitor the Presidential Debate
  • The most aspects I’ll be watching as a commodities broker
    • U.S. China relations
      • Specifically, Trump and tariffs
        • Corporate impact (Tesla/Apple)
        • Commodities Impact
          • Semiconductors, Agriculture, Solar
        • U.S. Energy independence
          • Iran relations?

This morning, we will add Gold, Silver, Copper, Bitcoin, and Sugar.

Silver we are going to target another call spread.

Gold – Support $2300, First resistance $2370 (50 DMA), we must see a close above $2392 to reignite the bulls

Silver – Support 50 DMA at $29.29 with critical support $28.28 and only a close over $31.19 brings back a new wave of buyers.