US Market Review 26th May 2021

by Elina Nikolova

Gold hit 1900 highs on Tuesday for the first time in 20 weeks. The Yellow metal remained near its highest level in more than four months, as investors digested comments by U.S. Federal Reserve officials that sought to remove inflation concerns. The price this morning broke above the 1900 level, trading as high as 1910.32. The price is approaching the January 6th yearly high of 1959.40 without any resistance level in-between. The MACD lines are above the zero line, with the MACD signal line crossed above the MACD line and both pointing upwards supporting a further rally.
For the bulls, important resistance levels at 1959.40 yearly high, at 2076.70 top of August 7th 2020 and finally at 2134.00 1.618 Fibonacci extension target level of the last move.
For the bears, support levels exist at 19875.50 inside support from Jan 21st top, at 1851.47 where the 0.618 Fibonacci retracement level lies, and finally at 1756.05 inside support level from the March 18th mid-point top of the double bottom observed earlier this year on the daily chart.

• It’s a quiet day ahead on the US economic calendar. Expect FOMC member chatter to be the only potential influence.

• U.S. stocks closed slightly lower on Tuesday, and each of Wall Street's main indexes failed to stray far from the unchanged mark following a rally in the prior session as investors continue to try and assess the route of inflation.
The Dow Jones Industrial Average fell 81.52 points, or 0.24%, to 34,312.46, the S&P 500 lost 8.92 points, or 0.21%, to 4,188.13 and the Nasdaq Composite dropped 4.00 points, or 0.03%, to 13,657.17.

• U.S. consumer confidence hovered at a 14-month high in May as optimism over jobs tempered concerns about rising inflation and diminishing government financial support.
The Conference Board said its consumer confidence index slipped to a reading of 117.2 this month from 117.5 in April, the highest level since February 2020. Economists polled by Reuters had forecast the index at 119.2.

• U.S. single-family home prices in 20 key urban markets rose in March from a year earlier by the most in more than seven years, a closely watched survey said on Tuesday.
The S&P/Case Shiller composite index of 20 metropolitan areas gained 13.3% through the 12 months ended in March on a seasonally adjusted basis, the largest annual price increase since December 2013.

• Gold and silver prices on Tuesday closed moderately higher, with gold at a 4-1/2 month high. A slump in the dollar index on Tuesday to a 4-1/2 month low pushed metal prices higher. Also, a decline in global government bond yields gave precious metals a boost. Silver prices fell back from their best levels on weaker-than-expected U.S economic data that was negative for industrial metals demand.
June gold (GCM21) on Tuesday closed up +13.50 (+0.72%), and July silver (SIN21) closed up +0.151 (+0.54%).

• Oil prices moved a shade higher on Tuesday as rising demand from the approach of the Northern Hemisphere's summer driving season and lifting of coronavirus restrictions mixed with worries that Iran's possible return to the market will cause a supply glut.
After gaining over 5% in the prior two sessions, Brent futures rose 19 cents, or 0.3%, to settle at $68.65 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 2 cents to settle at $66.07.

• At 14:00 (GMT) FOMC Member Randal Quarles is due to speak about insurance regulation at an online event hosted by the National Association of Insurance Commissioners International Insurance Forum.

• At 14:30 (GMT) Crude Oil Inventory figures will come out. While this is a US indicator, it also affects the Loonie (USDCAD) due to Canada's sizable energy sector.

• At 17:00 (GMT) CAD BOC Governing Council Member Timothy Lane Dis due to participate in a virtual panel discussion titled "The Future of Digital Currencies in Canada" at an online event hosted by the Canadian Chamber of Commerce. Audience questions expected.

• At 19:00 (GMT) FOMC Member Randal Quarles is due to speak about the economic outlook at an online event hosted by the Hutchins Center on Fiscal and Monetary Policy. Audience questions expected.

US Indices yesterday:

• Dow Jones -0.24%
• S&P 500 -0.21%
• Nasdaq -0.03%

Sources: Investing.com, forexfactory.com, barchart.com.