Issue 51 – The week of February 6th, 2023

Key Resistance and Supports: Upcoming Week

Reports of Note due out this week:

After last week’s onslaught of reports, this week is looking positively quiet by comparison. Global players will be watching keynote speeches from US Fed members on several days this week for clarity on future interest rate policy. As in, are they getting ready for a period of no action, hikes, or cuts? Indications of a pause in rate hikes or a confirmation that the large hikes seen in the past year are not on the policy table going forward will be a bullish sign for precious metals prices.

For Canadian markets, the employment report will be released on Friday. Expectations are a little bit mixed for this report. Markets are expecting a small rise in the number of jobs created and a small rise in the unemployment rate at the same time. Depending on how close the school release is to the expected release it probably won’t have that much of an impact on either precious metal prices or the value of CAD dollars.

Geopolitics

Seems the only thing people wanted to talk about last week was a balloon. There is a lot to digest at this moment and all the information is not out yet. It is not the kind of moment that will directly affect precious metals prices, but it can be the catalyst that leads to moments that do.

Does China need to use balloons to lift large surveillance apparatus? No. They have a large number of satellites over the US at any given moment. As the US does over the entire planet.

So, what was this? Well, it looks like a probe to evaluate what the answer to such an incursion would be. There are some exceedingly high games of brinksmanship being played out by global players.

Oh, wait a second. Is that why atomic scientists moved the “Doomsday Clock” to 90 seconds before midnight last week? Which just happens to be the closest it has ever been to midnight.

The Call

Looks like a good week for bargain hunters in precious metals markets after last week’s stellar US jobs report, which drove down prices. Markets were expecting 188k jobs to be created but the report printed 517k. The US unemployment rate fell to the lowest rate of 3.4%, not seen since 1969. Asian and London traders have already been stepping up to make purchases. With a light report week, it is most likely a good times to add to portfolios.  The sellers exhausted themselves last Friday. A classic buy-the-dip opportunity.

Last Week in Review

• Precious metals prices tumbled on a stunningly strong US employment report.
• It was announced that Russia bought a record number of gold bars in 2022
• India announced they have raised taxes on the silver to match that gold at 15%