Yesterday’s Federal Open Market Committee minutes failed to cause a stir in the precious metals markets.  According to the minutes, most participants think it is unlikely that economic data in June will provide satisfactory evidence to raise the target range for the federal funds rate.  Notably, dollar strength may have a greater and longer lasting adverse effect on exports than previously anticipated.  Gold finished out the trading day after the minutes in the exact same way it started it, lethargically and still in a tight range.

Today, a mixed bag of US economic data encouraged market participants to trade gold with a bearish bias.  Gold ETFs continue to shed ounces and net outflows for the month of May are now in excess of 700,000 ounces.  This isn’t that surprising given that US equities are challenging all-time highs.  The 100 and 200 day moving averages are starting to converge in the $1,212 – $1,215 area which is also, not coincidentally, the highs from yesterday and today.  This area is certainly near term resistance while bids are waiting ahead of $1,200.