Guardian Weekly Market Report – Issue 140
Issue 140 – The Week of October 21, 2024
Key Resistance and Supports this Week
Gold
| Support | Resistance |
|---|---|
| 2693.00 | 2735.00 |
| 2630.00 | 2785.00 |
| 2600.00 | 2835.00 |
| 2655.00 | 2885.00 |
Silver
| Support | Resistance |
|---|---|
| 33.00 | 34.50 |
| 32.25 | 35.25 |
| 31.53 | 36.00 |
| 30.93 | 36.75 |
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Reports of Note Due This Week
This week is very light on economic indicators. Upcoming is leading economic indicators, existing home sales, Fed Beige Book, new home sales, durable goods and consumer sentiment.
- Monday, Oct 21 – At 10:00 A.M. its U.S. leading economic indicators.
- Tuesday Oct 22 – none scheduled.
- Wednesday Oct 23 – At 10:00 A.M. we see the release of existing home sales and at 2:00 P.M. it’s the release of the Fed Beige Book.
- Thursday Oct 24 – We start the day at 8:30 A.M. with the Weekly Initial Jobless Claims expected to be up to 250,000 versus last weeks 241,000. Then at 9:45, it is the S&P flash U.S. services PMI and S&P flash U.S. manufacturing PMI. Then at 10:00 P.M. it is new home sales.
- Friday Oct 25 – At 8:30 A.M. Durable goods and lastly at 10:00 A.M. we have consumer sentiment.
Geopolitics
China’s third-quarter GDP growth slightly surpassed expectations at 4.6% year-on-year, a bit lower than the previous 4.7% from the second quarter. Despite this, the economy showed signs of robustness with a quarter-on-quarter expansion of 0.9%. Other economic indicators like retail sales and industrial production also exceeded forecasts, indicating a potential stabilization and recovery of the economy. Amid ongoing challenges, China has implemented various stimulus measures to support economic activity, particularly in the real estate sector and broader financial policies aimed at enhancing liquidity. These efforts reflect the government’s commitment to achieving its annual growth target of around 5%.
The Biden administration supports Israel’s military actions against Hezbollah to potentially enable political changes in Lebanon. This strategy aims to weaken Hezbollah, allowing Lebanese forces to control the south, as stipulated by U.N. Resolution 1701. This resolution, established in 2006, intends for Israel to withdraw from Lebanon, leaving the area under Lebanese sovereignty, safeguarded by its army and U.N. peacekeepers. Despite previous efforts, Hezbollah has grown significantly, complicating enforcement of this resolution amid ongoing political and economic crises in Lebanon. The U.S. is promoting a diplomatic approach to strengthen Lebanon’s political system and reduce Hezbollah’s influence
North Korea demolished parts of inter-Korean roads and railways, leading South Korea’s military to fire warning shots. This act violates previous inter-Korean agreements and marks a shift as North Korea pushes for a “two-state” system, abandoning unification goals. The destruction follows accusations by North Korea that South Korea sent drones dispersing anti-North propaganda, which Seoul has not confirmed. The incident has escalated tensions, with North Korea’s leadership threatening severe repercussions. South Korea maintains that the cross-border infrastructure, funded by Seoul, was meant to foster cooperation and must be repaid by Pyongyang despite the demolitions.
The Call
Gold had a very strong up move last week closing again at an all-time high. Silver broke out to the upside as well, going up more than 5%. We would expect further upside to both metals, as we get closer to the U.S. Election which is still to close to call. There are few economic indicators this week and none of major importance. We favour a test of 2775.00 to 2800.00 this week. A pull back to 2650.00 during the week would be considered healthy on our way towards 3000.00.
Last Week in Review
Gold opened on Sunday evening at 2657.40 and drifted sideways to lower to make the weekly low early Tuesday morning at 2638.70. From here, gold started a strong steady rally taking the precious metal higher to all-time highs of 2722.10 Friday and settled near the highs at 2720.90.
Silver opened Sunday night at 31.51where the weekly low was established in the first hour of trading at 30.71. From here, silver traded in a range from 31.00 to 32.25 until Friday morning when it went up sharply making the weekly high Friday afternoon at 33.755 and settled at 33.70.
- The U.S. Dollar Index was stronger this week and finished at 103.49.
- The Gold/Silver Ratio rallied strongly for the week at 80.8 ounces of silver for 1 ounce of gold.
Last Week’s Price Ranges
| Market | Gold | Silver |
|---|---|---|
| Open | 2657.40 | 31.51 |
| High | 2722.10 | 33.75 |
| Low | 2638.70 | 30.71 |
| Close | 2720.90 | 33.70 |
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.
