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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Precious metals faced downward pressure as investors reassessed risk premiums amid stabilizing political conditions. Gold confirmed a bearish channel breakdown, reaching the $4,521 level, while silver prices slipped to $75.86 after failing to sustain higher resistance levels. Market participants are currently balancing sticky US CPI data against the ongoing geopolitical truce between the US and Iran, which has notably reduced safe-haven demand.
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Sign InThis retreat coincides with US economic data showing unexpected resilience, as the NY Empire State Manufacturing Index hit 19.6 in May, far exceeding the 7.5 forecast per market data. Additionally, industrial production grew by 0.7%, reinforcing expectations that interest rates will remain elevated to combat persistent inflation. In contrast, global demand signals were mixed as China's industrial production grew by only 4.1%, missing the 5.9% forecast, which weighed on silver's industrial outlook.
Looking ahead, traders are monitoring gold's current support at $4,521 (close May 22, 2026) to determine if the bearish momentum will accelerate. Key catalysts in the coming days include the RBA Meeting Minutes on May 19 and UK unemployment data, both of which could influence US Dollar strength and subsequently impact the pricing of dollar-denominated commodities.