Stylized representation of the movement of the price of gold.

Guardian Weekly Market Report – Issue 124

Site icon for Guardian Gold     Issue 124 – The Week of July 1, 2024

Key Resistance and Supports this Week

SupportResistance
2292.502340.00
2250.002370.00
2230.002396.00
2178.002431.00
SupportResistance
28.0030.18
27.0030.90
26.2031.68
25.9032.50

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

This week will be interesting with Canada Day on July 1st in Canada followed on Thursday with the July 4th Independence Day in the U.S.A. The minutes from the Federal Reserves June meeting will be released on Wednesday at 2:00and the U.S. Jobs report on Friday morning.

  • Monday, July 1 – Canada Holiday in Canada. S&P final U.S. Manufacturing PMI at 9:45 AM. Then at 10:00 AM we get the release of construction spending and ISM manufacturing.
  • Tuesday July 2 – At 9:30 AM, Jerome Powell speaks in Portugal. Then at 10:00 AM we get the release of the May job openings. 
  • Wednesday July 3 – 8:15 AM sees the release of the private ADP employment report and the Weekly Initial Jobless Claims at 8:30 AM. They are expected to come in at 235,000, slightly higher than  last weeks 233,000. Also, at 8:30 is the U.S. Trade Deficit. Then at 9:45 A.M. we see the S&P final U.S. services PMI for June. Finaly at 10:00 A.M. we see the factory orders (May) and ISM Services for June. 2:00 P.M. is when the Minutes of the June FOMC meeting will be released.
  • Thursday July 4 – Independence Day national holiday, markets closed.
  • Friday July 5 – At 8:30 A.M., the Nonfarm Jobs report and the unemployment rate are released. Also, U.S. hourly wages.

Geopolitics

Prime Minister Netanyahu stated that the intense combat phase in Gaza, specifically around Rafah, is nearing its end but clarified that the war against Hamas isn’t concluding. He mentioned plans for a partial ceasefire deal to release some hostages, yet he intends to continue military actions in Gaza. Netanyahu also plans to reposition some forces towards Israel’s northern border with Lebanon, potentially heightening tensions with Hezbollah. This strategy has raised concerns internationally, including from the European Union and U.S. military officials, about the risk of broader regional conflict.

The Japanese yen has fallen to its weakest level against the U.S. dollar since 1986, reaching 160.82. This recent plunge has sparked discussions about potential intervention by Japanese authorities, especially since the Ministry of Finance confirmed spending significant amounts on currency intervention between April and May. With upcoming U.S. economic data, further intervention might be considered if the yen continues to weaken, reflecting concerns about its rapid decline and speculator-driven market pressures.

In Iran, a runoff presidential election is scheduled for July 5 following an initial vote where neither reformist Masoud Pezeshkian nor hard-liner Saeed Jalili secured an outright majority. The turnout was historically low at 39.96%, reflecting widespread discontent with the governing theocracy amid economic and social crises. This runoff is a significant event as it marks another contentious political moment for Iran, which is also experiencing heightened tensions in the Middle East and ongoing internal pressures for social and political reforms.

In a significant coordination effort, senior UN, Israeli, and U.S. military officials convened to discuss the reactivation of aid distribution in Gaza. The halted aid, about 12 million pounds, has been in storage since early June due to security concerns. A U.S.-constructed pier system, Joint Logistics Over the Shore (JLOTS), initially facilitated aid delivery but faced operational challenges from adverse weather. Alternate routes through Ashdod are being considered to ensure aid continuity. This meeting reflects an optimistic outlook towards resuming aid flows imminently.

The Call

Gold is still stuck in the trading range between 2300.00 and 2400.00. We still expect a break of the 2300.00 level in the next week or two  as the summer doldrums begin. We are targeting the 2225.00/2250.00 area for the gold bottom. After this bottom, a rally back up would be expected after a few weeks of consolidation down there and a reversal back to the upside. This will be confirmed by a close above 2375.00 – 2400.00. Then we should be off to the races as they say! HAPPY  HOLIDAYS


Last Week in Review

Gold opened at 2321.60 on Sunday evening and drifted a little higher until Tuesday morning making high at 2336.70. Gold then slowly slumped steadily lower until Wednesday morning hitting the weekly low at 2292.90. We then rallied back towards the high of the range to make the weekly high at 2338.60 after the release of the PPI number Friday at 8:30 AM  before closing a bit lower at 2325.00 Friday afternoon.

Silver opened Sunday evening at 29.58 which was almost the same as last week. Then over the next few hours drifted higher to make the weekly high at 29.765. Silver then reversed direction and traded lower into Wednesday morning setting the weekly low at 28.58. A steady rally took place from here and like gold rallied higher to 29.64 on the PCE number and then trailed off for the rest of Friday finishing at 29.12 for the week.

  • The U.S. Dollar Index was up slightly for the week again and finished at 105.87.
  • The Gold/Silver Ratio weakened this week to settle at 80.0 ounces of silver for 1 ounce of gold which was a whisker

Last Week’s Price Ranges

MarketGoldSilver
Open2321.6029.58
High2338.6029.76
Low2292.9028.58
Close2325.0029.12

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