The initial expectation would be for more the same of quiet precious metals markets, however. There are possibilities for some fireworks this week with Canadian and US employment reports due out this week. As well the OPEC meeting in Vienna could drive prices for precious metals and energies one way or the other depending on what kind of statement they make. Markets should be quiet until these events transpire later in the week.
Precious metals look set to continue their upward price movements again this week. Fundamental factors such as the war in Ukraine, supply chain disruptions and volatile equity markets continue to give precious metals a positive impetus.
Once again price action for precious metals was a one-way street, down. As soon as the markets opened they slipped and slipped all week long. Silver especially is now poised in a very perilous technical area, having very little support below the current area.
The most important moment last week was when the US Federal Reserve increased interest rates by half a percent or 50 basis points. This was the largest rate hike in 22 years. In the accompanying statement, they also added that the markets should expect future half-point rate hikes for the next few FOMC decision dates which are generally held about every five weeks. Precious metals markets began to price in this expected rate hike so fell early in the week and metals rallied when the rate was not hiked by a higher margin.
Last week it seems the markets finally started to take notice that global central banks are now making a concerted effort to rein in inflation. The result was a blood bath for the precious metals markets and equity markets as well. From the open on Monday through to Friday’s close, price action was a one-way street south.