Precious metals soar as dollar continues to sink

Yesterday, the US new home sales dropped to 863,000 for April, well below the expectations of 970,000 and also below 917,000 scored in March. Additionally, consumer confidence weakened to 117.2 for May.

However, Fed Vice Chairman Richard Clarida said the governors might soon be ready to discuss the slowdown of asset purchases (i.e., tapering) as the economic growth continues to improve.

“It may well be… there will come a time in upcoming meetings we will be at the point where we can begin to discuss scaling back the pace of asset purchases… that was not the focus of the April meeting. It is going to depend on the flow of data,” said Clarida.

Despite his hawkish remarks, the US yields fell notably, and the 10-year yield is back below 1.6%. Precious metals were bid, with gold rising to five-month highs above 1,900 USD and silver climbed above 28 USD. Gold is now up nearly every day in May, something really unusual. 

In the FX, the dollar continues to bleed, and the EURUSD pair is now targeting the current cycle highs above 1.2300

US indices are up today, but they struggled to hold gains yesterday. Nevertheless, the medium and short-term trends are still bullish.

Source: https://www.axiory.com/market-news/precious-metals-soar-as-dollar-continues-to-sink