Stylized representation of the movement of the price of gold.

Guardian Weekly Market Report – Issue 120

Site icon for Guardian Gold     Issue 120 – The Week of June 3, 2024

Key Resistance and Supports this Week

SupportResistance
2284.002364.00
2243.002384.00
2219.002420.00
2167.002454.00
SupportResistance
30.0032.43
29.2033.25
28.0034.18
27.0035.75

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Reports of Note Due This Week

The U.S. jobs report on Friday will highlight this week’s economic calendar which also has economic data from manufacturing and services survey that could provide insights into the direction of inflation and economic conditions.

  • Monday, June 3 – S&P flash U.S. manufacturing PMI for May will be released at 9:45 AM. Then at 10:00 AM we see construction spending (April)  followed by ISM manufacturing (May).
  • Tuesday June 4 – At 10:00 AM, we see the release of factory orders and job openings.
  • Wednesday June 5 – at 8:15 we start the day with the ADP private-sector jobs report which is expected to see 179,000 jobs created verses last months 192,000. Then at 8:30, U.S. productivity and U.S. trade deficit will be released. At 9:45 the S&P flash U.S. services PMI followed at 10:00 Am by ISM services for May.
  • Thursday June 6 – sees the Weekly Initial Jobless Claims at 8:30 AM. They are expected to come in at 216,000, down from last weeks 219,000. 
  • Friday June 7 – At 8:30 A.M., the monthly jobs report and the unemployment rate will be released. Always a market mover. Expectations are for 178,000 jobs created which is slightly higher than last months 175,000. Then at 10:00, we get wholesale inventories being released.

Geopolitics

On Thursday Donald Trump was convicted on all 34 counts of falsifying business records related to a hush money payment, marking him as the first former U.S. president to be criminally convicted. The verdict followed a trial that began on April 15. Sentencing is scheduled for July 11. Trump, facing potential prison time, denounced the trial as rigged. His conviction stems from payments made during the 2016 election campaign to silence claims potentially harmful to his presidential run. The legal process allows Trump to remain free pending appeal, which could extend beyond the upcoming election season.

Claudia Sheinbaum has been elected as Mexico’s first female president, garnering between 58.3% and 60.7% of votes. She succeeds Andrés Manuel López Obrador and pledges to build a “diverse and democratic” Mexico. Her victory, marked by the highest number of votes in Mexican history, follows her tenure as Mayor of Mexico City. Sheinbaum, also notable as Mexico’s first president of Jewish heritage, is expected to continue welfare policies and “hugs, not bullets” anti-violence strategies. She advocates for increased renewable energy use, diverging slightly from López Obrador’s policies.

President Joe Biden announced on Friday a three-part plan proposed by Israel for a permanent cease-fire in Gaza, starting with a six-week full cease-fire and the release of women and children hostages. This initial phase also includes a surge of humanitarian aid. The plan was relayed to Hamas through Qatar and aims to progress to negotiations for a permanent cease-fire and a major reconstruction plan in Gaza. This proposal comes amid U.S. internal political challenges and widespread criticism of Israel’s actions in Gaza, which have resulted in significant Palestinian casualties.

The Call

Gold ended the week falling to new lows of 2318.00 Friday afternoon after a shortened week with the Memorial Day holiday on Monday. Gold starts the week on a sell position with gold looking to fall to the support level at 2290.00 with 2250.00 in sight. We would jump back on the bullish path for gold with a close above 2400.00.


Last Week in Review

Gold opened at 2336.70 Sunday evening and rallied to make its weekly high of 2364.80 on Tuesday morning. From here, gold began moving lower through Wednesday and into Thursday morning at which time a rally materialized taking gold up to to where it opened. We then waited for the PCE on Friday morning which when it was released, took gold higher for a short while and then selling began and took gold down for its weekly low at 2318.00 before closing at 2324.70 Friday afternoon..

Silver opened Sunday evening at 30.40 and rallied steadily to midweek where the high was made on Wednesday at 32.33.  From here , silver drifted lower waiting for the Personal Consumption Index on Friday morning and like gold rallied initially and then sold off to make the weekly low at 30.165 before closing at 30.385.

  • The U.S. Dollar Index didn’t do much for the week and finished at 104.67.
  • The Gold/Silver Ratio remained firm this week to settle at 76.6 ounces of silver for 1 ounce of gold.

Last Week’s Price Ranges

MarketGoldSilver
Open2336.7030.40
High2364.8032.33
Low2318.0030.165
Close2324.7030.385

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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