Issue 53 – The week of February 20th, 2023

Key Resistance and Supports: Upcoming Week

Reports of Note due out this week:

It is looking like a quiet week on the report front. Next week will bring a much more robust schedule of releases.

Monday

CAD and US markets closed for local holidays.

Tuesday

CAD Consumer Price Index. Inflation measures are expected to show a rise in costs. Will be a benefit to precious metals prices.

Wednesday and Thursday both look very quiet with no reports of note due to being released. 

Friday

The US Michigan Consumer Confidence report is due out. Another inflationary release could be a beneficial indicator for precious metals prices this week.

Geopolitics

Russia is finding itself in a moment where they are having to sell gold reserves to continue to finance their war in Ukraine. As they release gold bullion for sale, there are plenty of buyers eager to purchase all offerings.

President Biden’s visit to Kyiv is not being received well in Moscow. The timing of this visit is significant. It was on the US Presidents’ Day holiday and this week will mark the first anniversary of the Russian invasion.

This was as much a message to the Kremlin as it was to Beijing. Rumours have begun to circulate that the Chinese will start selling ammunition to the Russian forces. The US is sending a clear message that they are in this for the long haul.

Precious metals prices will become a more important aspect of future game plans moving forward. Not so much for Ukraine but for Russia. China will want payment for munitions in gold for sure, and perhaps take some in oil.

The long and the short of it is currently Russia is a net seller of gold reserves.

The Call

With all the theatre of Biden’s visit to Kyiv, specifically with Zelenskyy and him walking down the street, air raid sirens blaring, the US dollar has had a good pop. Precious metals have taken it on the chin. Should be a flash-in-the-pan moment. Look for a quiet week with metals returning to last week’s levels near 1850 for gold and 22.00 for silver.

Again, price drops are a buy-the-dip moment. Geopolitical moments this year have a strong potential to push metals prices much higher.

Last Week in Review

Precious metals prices were very subdued last week. But weak on speculation of a 50-point rate hike in March. ECB also indicates a possible rate hike in hawkish statements.

	Gold	Silver
Open	1862	21.91
High	1870	22.07
Low	1818	21.16
Close	1838	21.58