Issue 58 – The week of March 27th, 2023

Key Resistance and Supports: Upcoming Week

Reports of Note due out this week:

Monday the only moment of importance will be the speech by the Bank of England Governor Bailey. Market observers will be looking for hints toward future interest rate policy.

Tuesday BOE governor Bailey will speak again at an early morning (North American time) meeting. Again market observers will be listening for interest rate policy decision clues. This will be followed in the US by FED official Barr speaking. Markets are paying very close attention to the tight wire rope that central banks are currently walking.

Wednesday also looks to be a quiet day. The two events of note as far as precious metals are concerned are the release of crude oil inventories in the US. Falls in inventories could be bullish for precious metals prices in the short term. This will be followed later by a Bank of Canada speech from Deputy Governor Gravelle. Markets will continue to pay attention to the tone for clues to future interest rate policy.

Thursday’s big gun will be the US GDP report at the start of the North American trading session. This annualized measure of inflation weighs heavily on FED policy decisions as so markets will be watching with bated eyes.

Friday will see Canada’s GDP released. Very similar to the US report but ultimately weighs on the Bank of Canada rate policy.

All in all not a lot of diverse reports to weigh on the markets in the coming week. Markets are very sensitive to interest rate policies from G7 central banks at the moment.

Geopolitics

So the war in Ukraine continues now headed into its second spring. This dynamic multi-fronted event ripples across the globe like a stone thrown into a pond. It affects a lot more than you might think.

The Russians will soon change their strategic targets. Throughout the winter they have chosen to attack infrastructure that delivers power (electricity) to the Ukrainians in an attempt to freeze them out and demoralize them. Well, winter is ending and the Russians did not achieve their goal. What’s next?

Pretty simple. The grain shipment deal allows wheat, sunflower oil and other grains to be transferred via ships through the Black Sea to ports abroad. The previous agreement was for 120 days at a time. The Russians now want to shorten it to a 60-day window before it needs to be renewed. The Russians are failing to make advances in any significant way. By no means is this event close to being finished. The longer it drags on the more bullish it is for precious metals prices.

The Call

Precious metals prices continue to look strong going into this week. Fundamentals remain remarkably bullish for commodities in general.

Gold is probably going to take another run at the $2000 handle this week considering how close it is to that level. A weekly close above there will be a clear bullish signal for future gains this year. Silver has some big hurdles to vault if it wants to move into higher real estate. The two handles of most important currently are the 23.00 handle and the 23.50 handle. Given silver’s historical volatility this could be done in a single trading session.

The coming week has more opportunity for promise than not in the precious metals markets. Any dips are a moment to pick up metals cheaply.

Last Week in Review

• · Precious metals rally as stocks fail from contagion fears
• · Rate hike from US pushed precious metals prices higher.
• · Canadian dollar pairs losses as stock market makes gains

	Gold	Silver
Open	1976	22.37
High	2009	22.51
Low	1934	22.13
Close	1975	23.19