Issue 9 – The week of April 11th, 2022

Key Resistance and Supports: Upcoming Week

Reports of Note due out this week:

Tuesday

• US Consumer Price Index. A measure of inflation, a rise indicating inflation is still climbing and would be bullish for precious metals prices.
• US API weekly crude oil stocks. A measure of supply chain continuing problems. A fall in stocks will be bullish for precious metals.

Wednesday

• US Producer Price Index. A measurement of how much manufacturing has changed. A rise is a sign of further inflation pressures on the economy which would be bullish for precious metals
• CAD Bank of Canada interest rate policy and interest rate announcement. A rise in interest rates would be bearish for precious metals and bullish for the C$.

Thursday

• ECB interest rate announcement. A hike in rates is bullish for the Euro and bearish for precious metals.
• CAD Wholesale and Manufacturing sales. An indicator of how healthy the Canadian economy is. Strong reports will be bullish for the C$ and bearish for precious metals.

Friday

• CAD ADP employment report. Strong job growth is bullish for the C$ and bearish for the precious metals markets.
• US CFTC Change in net gold futures contracts. A rise in long positions indicates market sentiment thinks prices will rise

Geopolitics

Precious metals are having a good start to the week in Asian and London trading so far. Supply chain disruptions continue to weigh on the markets. Beijing is still essentially closed and almost 50 million people are currently locked down in China. There does not appear to be any sign this is going to end soon.

The war in Ukraine is looking like it’s about to take a more brutal turn for the Donbas region. Russian troop consolidation in eastern Ukraine will alleviate their own supply chain issues allowing them a freer reign to operate.

Calls for expanded sanctions continue to be heard from the international community along with promises of further western military aid of equipment and intelligence support.

The Call

Precious metals look poised to make another run-up this week. All the proverbial ducks are lining up in a row for a bullish moment. Two potential obstacles for Precious metals look poised to make another run-up this week. All the proverbial ducks are lining up in a row for a bullish moment. Two potential obstacles for metals priced in C$ would be the Bank of Canada interest rate decision and the employment report. Otherwise, market sentiment is looking for higher pricing this week.

Last Week in Review

Both gold and silver were able to capitalize on gains made the previous week with both markets closing near their weekly highs.

There weren’t a lot of reports to drive prices, so metals seemed to be reacting to fundamental economic factors around the globe. Prices are going up for everything everywhere.

	Gold	Silver
Open	1925	24.64
High	1948	24.96
Low	1915	24.14
Close	1948	24.81