Guardian Weekly Market Report 2

Issue 2 – The week of February 21, 2022

Key Resistance and Supports : Upcoming Week

Reports of Note due out this week:

• Tuesday Canadian ADP employment report
• Tuesday US Johnson Redbook index
• Tuesday US PMI report
• Tuesday US Consumer Confidence report
• Friday US Durable Goods
• Friday US Michigan Consumer Sentiment Index
• Friday US CFTC gold net positions

Geopolitics

All eyes remain firmly fixed on Ukraine again this week. Gold has slipped a bit from Friday’s close on word that French leader Macron may have brokered a summit meeting between Putin and Biden. The buildup of troops on the Ukraine border is now thought to be numbering 150,000. War games between Russia and Belarus were scheduled to end yesterday but have now been extended indefinitely. It is thought that the Russians have committed approximately 60% of their forces so far.

Peace is far from breaking out at the moment. If rhetoric is an indicator that things are much closer to hostilities than not. Diplomatic missions are closing down in Kyiv. Western airlines are cancelling flights to Kyiv and adjusting flight paths to avoid Ukraine airspace. Foreign nationals are being told to leave Ukraine while they can as they might not be able to if fighting starts.

Supply chain shortages continue to affect global trade and energy prices as most of the northern hemisphere goes through the winter months. This factor

This week could be critical in the grand scheme of things. One thing that no one can control is the weather. Spring will soon be becoming to the Ukraine steps and that will make moving heavy military equipment a logistical nightmare when the ground is no longer frozen.

If hostilities start gold and silver will rally strongly. If a peaceful resolution comes about, gold and silver will see a big sell-off.

Last Week in Review

Both gold and silver had similar trading patterns last week taking a drubbing on Monday and rallying over the rest of the week. These kinds of mirrored movements indicate the level of fear that has permeated the markets.