Stylized representation of the movement of the price of gold.

Guardian Weekly Market Report – Issue 119

Site icon for Guardian Gold     Issue 119 – The Week of May 27, 2024

Key Resistance and Supports this Week

SupportResistance
2329.002370.00
2246.002414.00
2222.002446.00
2181.002495.00
SupportResistance
29.2131.00
28.8332.58
27.7933.38
26.0834.18

Subscribe to our Newsletter

Subscribe To Guardian Gold’s Newsletter

Please enable JavaScript in your browser to complete this form.
Name

Your email address will be used solely for sending you our newsletter and will never be sold, shared, or misused.

Reports of Note Due This Week

U.S. financial markets on Thursday will be eagerly awaiting the Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditures (PCE) Price Index which will be released at 8:30 AM. This week also brings us new home sales, the Case Shiller home price index and pending home sales.

  • Markets are closed Monday for Memorial Day Holidays. Housing market data  and consumer confidence are also on tap. Inflation will take center stage in a holiday shortened week with the release of the Personal Consumption Expenditures Index (PCE) on Friday.
  • Monday, May 27 – Memorial Day Holiday.
  • Tuesday May 28 – At 9:00 AM, we see the release of the S&P Case-Shiller home price index followed at 10:00 AM by the consumer confidence for May.
  • Wednesday May 29 – at 2:00 PM sees the release of the Feds Beige Book.
  • Thursday May 30 – sees the Weekly Initial Jobless Claims at 8:30 AM. They are expected to come in at 218,000, up from last weeks 215,000. Also, out at 8:30 AM is the advanced U.S. Trade balance in goods, advanced retail inventories and advanced wholesale inventories. Then at 10:00 Am , pending home sales for April.
  • Friday May31 – At 8:30 A.M., we see the release of Personal income and the all important P.C.E. Index for April. Markets have moved on interest rate signals and another positive inflation reading for April could have investors believing Fed officials may begin to talk about cutting rates again. But if PCE shows another increase , investors should expect more higher for longer sentiments from officials.

Geopolitics

China concluded two days of military exercises around Taiwan, simulating attacks and practicing boarding ships. The drills, named “Joint Sword — 2024A,” started after Taiwan’s new President Lai Ching-te, whom Beijing labels a “separatist,” assumed office. The exercises included 62 Chinese aircraft and 27 naval ships crossing the median line of the Taiwan Strait, traditionally an informal buffer between China and Taiwan. Taiwan has criticized the drills, reaffirming its sovereignty and right to self-determination despite China’s claims and pressure.

British Prime Minister Rishi Sunak announced a new general election for July 4, highlighting his government’s economic achievements amid challenges like COVID-19 and the energy crisis. This unexpected move challenges his Conservative Party to reverse poor polling against a strong Labour opposition led by Keir Starmer, who promises change and governance focused on working people. The election will decide all 650 House of Commons seats, with Sunak seeking public mandate after being internally selected as leader post-Truss. Labour’s potential victory could shift political directions significantly, influenced by public discontent over issues like Brexit’s aftermath.

In March, a deadly attack at Crocus City Hall near Moscow killed over 140 people. This past week Russia has arrested more than 20 individuals, blaming Ukrainian military intelligence, a claim Ukraine denies as “absurd.” Russia’s FSB also attributed the planning and execution to Islamic State Khorasan, an Afghan branch of ISIS. The attackers, identified as Tajik nationals, coordinated the assault online. Their detention has been extended, with no trial date set.

Millions voted in the latest round of India’s national elections, with Prime Minister Narendra Modi seeking a third term. Voters faced extreme heat, with temperatures hitting 43°C in New Delhi. The elections have seen Modi’s party challenged by a coalition of opposition parties, with issues like social justice and unemployment at the forefront. Modi has shifted focus in his campaign to stir Hindu nationalism. Turnout has been lower than expected, raising doubts about the BJP’s projected victory margins. The final round of voting is on June 1, with results due on June 4.

The Call

Gold had a strong pullback last week and we feel there is a little more room to the downside before the rally resumes. With a shortened trading week due to the Memorial Day Holiday, gold should continue the pullback towards 2275.00 and 2300.00. A bounce back towards 2400.00 then seems likely in the coming weeks. We remain bullish on gold and silver prices and expect a steady rise later in the year. Silver has gone through a round of profit taking and the 29.00 price level should provide support and then a rally towards 34.00. 


Last Week in Review

Gold opened at 2421.10 Sunday evening and began to rise almost immediately. This strong rally took gold to a new high at 2453.10 early Tuesday morning. We then started down on profit taking and that selling continued all week until the weekly low of 2325.20 was hit on Friday morning and the gold price settled at 2334.10 Friday afternoon..

Silver opened Sunday evening at 31.68 and continued last weeks strong rally to new highs of 32.58 before midnight. Then profit taking materialized as it did in gold and the market became choppy with sizable moves down and then right back up until the selling won this battle with silver making the weekly low of 30,06 Friday morning before closing the afternoon at 30.37.

  • The U.S. Dollar Index rallied a little for the week and finished at 104.72.
  • The Gold/Silver Ratio remained strong this week to settle at 77.0 ounces of silver for 1 ounce of gold.

Last Week’s Price Ranges

MarketGoldSilver
Open2422.2031.68
High2454.2032.58
Low2326.3030.06
Close2335.2030.37

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.

Scroll to Top