Stylized representation of the movement of the price of gold.

Guardian Weekly Market Report – Issue 123

Site icon for Guardian Gold     Issue 123 – The Week of June 24, 2024

Key Resistance and Supports this Week

SupportResistance
2290.002372.00
2250.002393.50
2200.002428.70
2150.002460.70
SupportResistance
28.8630.88
28.0031.50
27.5032.40
26.7533.30

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Reports of Note Due This Week

The markets will get some news on inflation when the Personal Consumption Expenditures Index (PCE) is released this Friday morning.

  • Monday, June 24 – There are no major economic indicators out today.
  • Tuesday June 25 – At 9:00 AM we see the release of the S&P Case-Shiller home price index followed br Consumer Confidence at 10:00 A.M.. 
  • Wednesday June 26 – at 10:00 A.M. sees the release of new home sales which are expected to come in at 650,000 versus 634,000 last month.
  • Thursday June 27 – sees the Weekly Initial Jobless Claims at 8:30 AM. They are expected to come in at 240,000, slightly higher than  last weeks 238,000. Also, at 8:30 AM is durable goods orders for May. Then at 10:00 A.M. ,  pending homes sales will be released and are expected to be up 1.0% after a big move down last month.
  • Friday June 28 – At 8:30 A.M., the Personal Consumption Expenditures Index (PCE) is released for May.

Geopolitics

Israeli forces shelled tent camps near Rafah, killing at least 25 and wounding 50. This attack is part of ongoing violence in Gaza, where hundreds of thousands have fled due to the conflict between Israel and Hamas. The Red Cross hospital nearby was overwhelmed with casualties. Despite a designated safe zone, Israel’s military stated there’s no indication of their involvement within this area, though they’ve previously targeted nearby locations. The situation remains dire in Gaza, with severe humanitarian challenges and escalating military actions continuing to affect civilians deeply.

Israeli Prime Minister Benjamin Netanyahu announced that the “intensive” phase of Israel’s offensive in Gaza is nearing its end, signaling a potential shift in focus to the border with Lebanon. However, Netanyahu indicated only support for a “partial” ceasefire that would not halt the conflict entirely. His comments suggested ongoing conflict with Hezbollah in Lebanon might escalate, complicating international relations, especially with the Biden administration in the U.S. Netanyahu expressed readiness to secure the release of some hostages in Gaza but maintained that military operations would continue. This stance has sparked both domestic and international concern over the prolonged conflict and its broadening regional implications.

Russian President Vladimir Putin visited North Korea, marking his first visit in 24 years, amidst heightened tensions and military activities in the region. During his visit, Putin aimed to strengthen ties with North Korean leader Kim Jong Un, particularly seeking support for Russia’s actions in Ukraine. The visit coincides with repeated North Korean military incursions at the South Korean border and discussions about a strategic partnership between Russia and North Korea, focusing on mutual interests against Western pressures. This development occurs alongside continuous hostile military interactions in the area.

At least 47 people have died due to historic flooding in Guangdong, China, following intense rainfalls that also triggered landslides. The most affected area was Pingyuan county in Meizhou city, where 38 of the deaths occurred. The region saw unprecedented rainfall, causing significant infrastructural damage, including to roads and bridges, and agricultural losses. The financial cost of the disasters in Meizhou is substantial, with millions of dollars in direct economic losses reported. Additional severe weather warnings have been issued for other parts of China, anticipating further heavy rains and storms.

The Call

Gold is experiencing a tug of war on prices as a high of 2400.00 and low around 2300.00 both get rejected and the gold price ends up in the middle. We would expect a break of the 2300.00 level next as we have a double top around 2440.00. We are still looking for a short term  pullback to the 2225.00/2250.00 area before gold makes an attempt at closing above 2375.00/2400.00 signaling a resumption of a rally to new highs.


Last Week in Review

Gold opened at 2334.20 on Sunday evening and drifted lower until Tuesday morning making the weekly low at 2306.00. Gold then rallied sharply until Friday morning hitting the high at 2368.20. A sharp selloff had investors hoping gold would hold the 2300.00 level which it did for now closing at 2320.50. This was a perfect example of the stairs up and elevator down in metals trading.

Silver opened Sunday evening at 29.60 and like gold, traded lower into Tuesday morning setting the weekly low at 28.965. A steady rally from here took silver up into Friday morning where the weekly high was established at 30.885 before the sellers showed up taking silver down quickly to finish the week at 29.565.

  • The U.S. Dollar Index was up stronger for the week again and finished at 105.80.
  • The Gold/Silver Ratio remained steady this week to settle at 78.8 ounces of silver for 1 ounce of gold which was a whisker stronger.

Last Week’s Price Ranges

MarketGoldSilver
Open2334.2029.60
High2368.2030.88
Low2306.0028.96
Close2320.5029.56

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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