Issue 7 – The week of March 28th, 2022

Key Resistance and Supports : Upcoming Week

Reports of Note due out this week:

Tuesday

• US housing price index. Rising prices are indicative of continuing higher inflation levels and would be bullish for precious metals.
• US weekly crude oil stocks. Falling stocks a sign of supply chain issues should be a bullish indicator for precious metals.

Wednesday

• US ADP employment report. Higher numbers of people joining the workforce will weigh down on precious metals prices
• US Gross Domestic Price report. The change in prices of goods and services is a key measure of inflation. Rises here will be bullish for precious metals prices

Thursday

• CAD Gross Domestic Price report. The change in prices of goods and services is a key measure of inflation. Rises here will be bullish for precious metals prices
• US Natural Gas Storage Change. If stores show another drop as the US sends more supplies to Europe to augment the lack of Russian gas flowing it would be a bullish indicator for both energy and precious metals prices.

Friday

• US Non-Farm Payroll & Unemployment report. A fall in the NFP number and a rise in unemployment will be beneficial to precious metals prices. They will suffer if the inverse occurs.
• CFTC net gold futures contracts. Weekly indication of the market sentiment of price direction of gold going forward into the future.

Geopolitics

To start the week off precious metals and energy prices are suffering as Shanghai enters a lockdown related to a Covid-19 outbreak there. Both groups are sensitive as Shanghai is a major manufacturing and financial hub. There are concerns that productivity will be severely affected as the city shuts down and business grinds to a halt.

We are now one month into the war in Ukraine and there seems to be no let-up in sight. As much as there are overtures for peace the reality seems that the situation only gets worse with each passing day. The rhetoric from all sides shows no sign of abatement. The only certain thing is supply chain stresses are having global economic ramifications. Markets continue to be commodity-focused as disruptions of supply chain logistics and inventories compound.

The Call

Precious metals continue to be in a “buy the dip” moment as fundamental factors continue to point to upside market prices. Moments, where the precious metals markets react negatively to headlines such as Shanghai, should be perceived as an opportunity to make acquisitions at a reduced entry price. Overall, the trend remains to the upside, both from a technical and fundamental perspective.

This will be an important week on a technical basis as it is the month and quarter-end alongside some reports of consequence to market action.

Last Week in Review

Precious metals had a strong showing last week after shrugging off the Fed interest rate hike from the previous week. There was very little bearish news to weigh down the metals. Fundamental concerns, such as inflation, the war in Ukraine continue to drive market prices to the upside.

	Gold	Silver
Open	1922	25.03
High	1966	25.87
Low	1910	24.59
Close	1958	25.57