Issue 54 – The week of February 27th, 2023

Key Resistance and Supports: Upcoming Week

Reports of Note due out this week:

Not going to be a huge week for reports, in fact, one of those strange weeks where the US employment report is not released on the first Friday of the month. There will be some reports that have the potential to drive markets.

Next week will be rather busy.

Monday:

The week will start off with a speech from FED Governor Jefferson. The key will be to listen to how hawkish the tone of the speech will be. Could be a moment for gold to test the $1800 threshold.

Tuesday:

Will see the release of Canadian GDP figures. The expected result is unchanged. This should not cause too many waves in precious metals prices if it comes in as expected. This will be followed by the US Consumer Confidence report which has the potential to drive markets. Many cross currents are influencing precious metals pricing these days. A lot of them are directly related to inflation pressures,
interest rate policy and household spending.

Thursday:

An announcement from FED official Walters. Hawkish tones could negatively impact precious metals prices.

Friday:

The week rounds out with the US PMI release followed by statements from FED members Logan, Bostic and Bowman throughout the day. The key thing to watch for here is unanimity in the tone of their statements.

Geopolitics

So Mr. Putin’s three-day “special operation” in Ukraine is now over one year old. It is also not likely to end anytime soon.

The Saudi government met with President Zelensky on the weekend and said they would provide $400 million of aid, $300 million being energy products, read oil.

It’s not been a good couple of weeks for the away team. They are being forced to sell gold reserves to finance their budget deficits.

This will continue to spiral downward.

Who is buying that gold? At a guess China. They are only too happy to add to their national reserves. Especially while the price of gold is in a depressed moment. Even Turkey which spent several years selling gold reserves is now beginning to restock their supplies.

As are many others.

It’s always good to pay attention to what the big players are doing.

It will give you an idea what way to move.

The Call

With both gold and silver plumbing new multi-weekly losses both markets appear to be at critical junctures.

They’re going to be multiple factors that will make gold test the $1800 handle this week from consumer reports to various speeches from FED governors and members.

The $20.00 handle will also be
a key area to hold for silver as well.

FED speak will be key this week. Market analysts are becoming divergent in expectations going forward.

A test below $1800 should be expected, viewed as a bargain-hunting moment. Those who are risk-averse should stay on the sidelines.

As for those who are not.

Chance favors the bold.

Last Week in Review

Precious metals prices tumbled last week as US CPI came in higher than expected portending possible future FED rate hikes

Turkey imported 53.8 tons of gold from Switzerland. The largest amount going back to 2012

FED minutes showed the vote on the last rate hike was very close. Several members felt a 50-point rate would have been a more appropriate decision.

	Gold	Silver
Open	1838	21.58
High	1847	21.97
Low	1808	20.70
Close	1811	20.76