Issue 17 – The week of June 6th, 2022

Key Resistance and Supports: Upcoming Week

Reports of Note due out this week:

Monday

• No reports of note

Tuesday

• AUS interest rate announcement. Look for further signs of central bank rises to help tackle inflation.
• CAD International Merchandise Trade. The difference in the value of Canadian imports and exports. If exports outweigh imports, it is bullish for the CA$ and weaker for precious metals.
• USA API weekly crude oil stocks. A measure of supply chain disruptions and inflationary pressures. Falling stocks are beneficial to precious metals prices.

Wednesday

• No reports of note

Thursday

• EUR ECB interest rate announcement. Look for further signs of central bank rises to help tackle inflation.

Friday

• USA Consumer Price Index (CPI). A measure of inflationary pressures on consumer goods.
• CAD Unemployment rate and net change in employment. A drop in unemployment and an increase in employment is bullish for the CA$. The inverse is bullish for the precious metals markets.
• USA CFTC net change in futures positions. Indicates market expected future price direction.

Geopolitics

Not a lot has changed in the past week, so consequently, we should probably expect more of the same this week. Inflationary pressures and supply chain disruptions remain unchanged. This is most visible in energy prices which continue to rise. The costs continue to rise for restaurants to get supplies but many are reticent to raise prices for fear of losing returning customers after two years of Covid.

China is finally loosening the screws on the  Shanghai lockdown, but it will take time to get everything back to running at previous levels.

Sabre rattling between Russia and western nations over military assistance to Ukraine is ramping up as the US and the UK offer long-range rockets and training to Ukraine. Possibilities of spillover outside of the Ukrainian theatre continue to escalate. Don’t be surprised when it happens, again. Remember the Russians have already shot down one passenger jetliner over Crimea in July of 2014.

The Call

There are not a lot of reports due out this week but there are several central banks announcing interest rate decisions, probably hikes for all three Australia, Canada and the European Central Bank. These have already most likely been priced into the market so don’t expect too many fireworks at precious metals prices. Some downside action is to be expected which could prove to be good buying opportunities. All in all probability markets will be quiet again this week. Geopolitical factors could affect quiet markets like this.

Last Week in Review

• EU signs deal to cut 90% of Russian energy purchases by the end of the year, Hungary only country given an exemption to this policy
• Russia suspended energy sales to The Netherlands as their contract expires and they refuse to renew with payments in Roubles
• China sends 30 warplanes into the Taiwan air defence zone
• Shanghai reopened public transit and restaurants after a two-month lockdown
• Malaysian ban on chicken exports creates a shortage in Singapore
• Russia urged western countries to not increase arms shipments to Ukraine threatening to increase attacks on more targets across Ukraine.

	Gold	Silver
Open	1854	22.15
High	1874	22.50
Low	1828	21.44
Close	1851	21.96