Guardian Weekly Market Report – Issue 163
Issue 163 – The Week of April 7, 2025
Key Resistance and Supports this Week
Gold
| Support | Resistance |
|---|---|
| 2999.00 | 3075.00 |
| 2983.00 | 3105.00 |
| 2952.50 | 3173.00 |
| 2885.00 | 3215.00 |
Silver
| Support | Resistance |
|---|---|
| 28.66 | 31.24 |
| 27.73 | 31.75 |
| 26.85 | 32.88 |
| 26.08 | 33.80 |
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Reports of Note Due This Week
Key takeaways this week will be the March Consumer Price Index (CPI) on Thursday followed by the Producer Price Index (PPI) on Friday.
- Monday, Apr 7– 3:00 P.M. Consumer credit.
- Tuesday Apr 8– 6:00 A.M. NFIB optimism index
- Wednesday Apr 9 – 10:00 A.M. Wholesale inventories. Fed minutes from the march FOMC meeting.
- Thursday Apr 10 – 8:30 A.M. the Weekly Initial Jobless Claims expected at 225,000 versus last weeks 219,000, Consumer price index, and Consumer price index (CPI). 2:00 P.M. monthly federal budget.
- Friday Apr 11 – 8:30 A.M. Producer price index (PPI). 10:00 A.M. Consumer sentiment.
Geopolitics
The European Union is preparing to impose tariffs on up to $28 billion worth of U.S. imports in response to President Donald Trump’s latest round of tariffs, signaling a potential escalation in global trade tensions. This move aligns the EU with other major economies like China and Canada, all of which have reacted to U.S. trade policies they say threaten global economic stability. The EU’s proposed tariffs will affect a wide array of products, including steel, aluminum, and consumer goods such as meat and wine. The European Commission is working to maintain cohesion among member states, aiming either to negotiate with the U.S. or to coordinate a stronger collective response. Meanwhile, China has imposed a 34% tariff on all U.S. imports in retaliation for Trump’s increase of tariffs on Chinese goods, which now total at least 54%. China’s countermeasures extend beyond tariffs, encompassing new export controls and anti-dumping investigations. As tensions intensify between the world’s two largest economies, the growing trade war is expected to disrupt global supply chains and increase the risk of a broader economic slowdown. These retaliatory actions from the EU and China mark a significant shift in international trade dynamics, potentially pushing the global economy toward deeper uncertainty.
The Chinese military has launched significant drills around Taiwan, which it describes as a response to Taiwan’s pro-independence activities. These exercises, involving various branches of the military, have heightened tensions in the region. Taiwan’s President Lai Ching-te, who Beijing views as a separatist, has faced sharp criticism from China, which has portrayed him negatively in propaganda materials. Taiwan has condemned the military maneuvers as provocations that undermine regional peace. The drills come amid broader geopolitical tensions involving the U.S., which continues to support Taiwan despite having no formal diplomatic ties.
The Israeli military has issued evacuation orders for most of Rafah in Gaza, signaling potential major ground operations there. This action coincides with Prime Minister Benjamin Netanyahu’s intensified demands for Hamas to disarm and its leaders to exit Gaza. Netanyahu is leveraging this situation to implement U.S. President Donald Trump’s plan for “voluntary emigration” from Gaza, amidst ongoing negotiations under military pressure. These developments come amid broader regional tensions and the resumption of Israeli airstrikes, which have been significant since the breakdown of a previous ceasefire with Hamas.
The Call
Last week we saw another record all-time high for gold, hitting 3201.60 on a spike higher and then sold off down towards 3000.00 with the news of Trump’s tariffs. Gold has bounced back a few dollars as we write this. As the equity and commodity markets have plunged around the world, what will happen next. Gold could rally back towards 3100.00 this week. If the equity markets continue to sell off with all the uncertainty, gold and silver are usually sold off to raise money for margin calls as they are very liquid and the easiest to sell. We would look for a volatile market with a wide range with the possibility of a sell off down to 2800.00 to 2900.00 until there is more clarity in the trade war.
Last Week in Review
What a week we had. Gold started the week optimistically hoping for lower tariffs. What we ended up with was a trade war. The announcement from the rose garden turned out to be much harsher than anyone expected. This sent equities into a nosedive for the remainder of the week. Commodities followed with gold faring much better than most. After hitting a new all-time high of 3201.6 on Wednesday, gold sold off for the rest of the week and closed Friday afternoon at 3056.10 for the June contract. Silver was punished and closed below 30.00 for the week. Just brutal for the longs.
- The U.S. Dollar Index was lower this week and finished at 103.02.
- The Gold/Silver Ratio had a massive drop this week with the ratio moving over 100 this week to close at 102.80 ounces of silver for 1 ounce of gold.
Last Week’s Price Ranges
| Market | Gold | Silver |
|---|---|---|
| Open | 3133.20 | 34.71 |
| High | 3168.00 | 35.00 |
| Low | 3015.60 | 29.20 |
| Close | 3037.50 | 29.66 |
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.
