Stylized representation of the movement of the price of gold.
Stylized representation of the movement of the price of gold.

Guardian Weekly Market Report – Issue 111

Site icon for Guardian Gold     Issue 111 – The Week of April 1, 2024

Key Resistance and Supports this Week

SupportResistance
2150.002312.50
2118.002375.00
2060.002437.50
2020.002500.00
SupportResistance
24.2125.55
23.8325.91
23.5526.28
22.6026.47

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Reports of Note Due This Week

Investors will be looking towards several updates on the U.S. labour market this week. The labour market is also known as the job market is a key measure of supply and demand for employees which can provide insight into the strength or weakness of the economy. We have JOLTS on Tuesday, ADP on Wednesday and the U.S. Nonfarm on Friday.

  • Monday, April 1 at 9:45 AM, we see S&P U.S. manufacturing PMI (Final) for March. Then at 10:00 AM Construction Spending for February is released and ISM manufacturing for March.
  • Tuesday April 2 at 10:00 AM sees the release of Feb. Factory Orders along with Jobs Openings (JOLTS) also for February.
  • Wednesday April 3, at 8:15 AM starts with the ADP employment report for March. Expectations are for an increase to 158,000 jobs from 140,000 in Feb. Then at 9:45 AM the S&P U.S. Services PMI (Final) is released and at 10:00 AM ISM services.
  • Thursday April 4 sees the Weekly Initial Jobless Claims at 8:30 AM. They are expected to be the same at 210,000 from last weeks 210,000.
  • Friday April 5, the U.S. employment report for March is released along with the unemployment rate. The nonfarm jobs number is expected to drop to 200,000 from 275,000 in February. The unemployment rate is predicted to drop to 3.8% from 3.9%. Then at 3:00 PM sees the release of consumer credit.

Geopolitics

The Israeli military has withdrawn from Gaza’s main hospital after a two-week raid, during which they killed hundreds of Hamas fighters, recovered weapons and intel documents, and left the medical complex in ruins. Palestinians say civilians sheltering there were subjected to mass arrests. Tens of thousands of Israelis marched against Prime Minister Benjamin Netanyahu, calling for new elections and criticizing the government’s handling of the war. The U.S. is sending a fresh round of bombs to Israel, despite expressing frustration at its conduct in the war. The death toll in Gaza has surpassed 32,600, with at least 27 people dying of malnutrition.New Zealand has accused China of engaging in “malicious cyber activity” linked to Chinese state actors, including targeting its parliament in 2021. This accusation comes after the U.S. and U.K. claimed that China-linked hackers were behind a cyber espionage campaign targeting British voter data and millions of individuals. New Zealand’s Foreign Minister expressed concerns about such activities and urged China to refrain from them in the future. Australia also condemned China’s alleged cyber attacks, emphasizing the implications for democratic institutions and open societies. China has disputed these claims, stating that cybersecurity issues should not be politicized and urging parties to base their claims on evidence. In response, the U.S. Treasury Department announced sanctions against individuals and a Chinese firm allegedly involved in malicious cyber operations.A giant cargo ship struck the Francis Scott Key Bridge in Baltimore, causing its collapse and resulting in six construction workers missing and presumed dead. The ship, the Dali, experienced a blackout just before the crash. Investigators are examining data recordings and interviewing crew members to determine the cause. The cleanup operation, including the removal of debris from the river, is underway, with the U.S. Army Corps of Engineers covering the costs. Reconstructing the bridge may take years, and officials are evaluating options for its structural soundness and potential improvements to accommodate larger ships.

The Call

Gold made another all-time high last week closing at 2234.00 while silver languished around 25.00 an ounce. Our expectations are for a continuation of the rally with gold targeting 2375.00 per ounce over the next couple of weeks while silver works to break 26.00 an ounce. If silver can break above 26.00, we look for a quick rally towards 28.00. If we get some surprises on the U.S. Labour front, we could see a small pull back on gold to 2150.00 and silver back to 24.00.


Last Week in Review

Although the markets were closed Friday, the U.S. Department of Commerce announced that its core Personal Consumption Expenditures price index increased 0.3% last month.  The data was in line with economist’s expectations. Gold opened at 2167.70 Sunday evening and dipped to make the weekly low at 2158.00 Monday morning. Gold then traded sideways to higher the rest of the shortened week and made new all time highs of 2236.10 coming into the close Thursday afternoon and finished the week at 2234.00.

Silver opened at 24.73 on Sunday evening and traded in a sideways range making the weekly high at 25.01 Thursday afternoon. All in all, a weak showing for silver as investor interest was absent.

  • The U.S. Dollar Index finished a little higher on the week at 104.55.
  • The Gold/Silver Ratio weakened for the week at 89.5 ounces of silver for 1 ounce of gold.

Last Week’s Price Ranges

MarketGoldSilver
Open2167.7024.73
High2236.1025.01
Low2165.1024.32
Close2234.0024.98

The information contained in this report is intended to provide market commentary and not as a recommendation or as a basis for investment decisions. The views expressed herein are the author’s and may differ from the views of others at Guardian International Gold. Guardian International Gold is a trader of Precious metals and this communication is to be considered an invitation to trade. Guardian International Gold makes our best effort to communicate reliable information but no express or implied warranty or representation as to its accuracy, completeness, or correctness may be taken.

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