May 2,2016 With the UK and several other major markets out on holiday yesterday, gold cracked above the $1,300 psychological threshold for the first time in over a year. The move took place in thin trading conditions and despite being predominantly technically driven, the yellow metal was also aided by an overall weak USD. Gold tested above $1,300 yet again today but was unable to sustain gains. On the heels of positive US economic data, Federal Reserve President of Atlanta Dennis Lockhart commented that a Fed rate hike is a “real option” in June. He also remarked that he sees the economy recovering after the first quarter slump. Lockhart’s commentary was enough to cause gold’s retreat as traders took profits. After two days of ultimately failing to close above $1,300, gold looks like it wants to head south. It is interesting to note that silver, which has paved the way for gold lately, has traded lower for two days now and has backed more off its recent highs than its yellow counterpart. After such a big move up in April for silver, I would expect further selling pressure to emerge.