Guardian Weekly Market Report 92

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Issue 92 – The week of November 20th, 2023

Key Resistance and Supports: Upcoming Week

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SupportResistance
1952.002000.00
1932.002016.00
1900.002036.00
Gold
SupportResistance
22.5024.30
21.8524.75
21.1025.38
Silver

Reports of Note due out this week:

This week is a very quiet week with the Thanksgiving Holiday on Thursday.

  • Monday sees the release of the U.S. leading economic indicators at10:00 AM.
  • Tuesday at 10:00 AM we get existing homes sales followed at 2:00 PM by the Fed minutes from October 31/Nov 1 FOMC meeting.
  • On Wednesday, Initial jobless claims will be released a day early due to the Thanksgiving Day holiday on Thursday. Also, at 8:30 we get the Durable-goods orders. Consumer sentiment (final) will be released at 10:00 AM.
  • Thursday is the Thanksgiving holiday, and no economic indicators are scheduled.
  • Friday sees the S&P flash U.S services and manufacturing PMI released at 9:45 AM.

Geopolitics

Residents in an evacuated zone of Iceland were briefly allowed to return home to gather essential items as authorities warn of a possible volcanic eruption. The Rekjnanes Peninsula has experienced numerous earthquakes since November 11, with ongoing seismic activity. Grindavik, a town 35 miles from Reykjavik, faced significant damage, prompting evacuations. Half the town lost power earlier but has since been restored. Residents are permitted to enter the danger zone to retrieve vital items like pets and medicine. Despite efforts to manage the situation, the risk of eruption remains high, with seismic activity and sulfur dioxide emissions indicating magma movement beneath the surface. Authorities continue to monitor the situation closely.

A powerful undersea earthquake with a magnitude of 6.7 struck the southern Philippines, causing ceilings to collapse in shopping malls. The quake originated about 15 miles from Burias, with a depth of 48 miles. Videos on social media depicted scenes of chaos as shoppers screamed and sought shelter. Two major malls, SM City General Santos and Robinsons GenSan, temporarily closed. Fortunately, there were no reported injuries, and no tsunami warning was issued. The Philippines, situated on the Pacific “Ring of Fire,” frequently experiences earthquakes and volcanic activity, prompting ongoing vigilance and preparedness measures. President Ferdinand Marcos Jr. instructed government agencies to ensure the safety of affected individuals.

President Joe Biden held a four-hour summit with Chinese President Xi Jinping, breaking a yearlong silence between the leaders. They agreed to revive dormant military communication channels, combat fentanyl trafficking, and address advancements in artificial intelligence. The meeting, held at the Filoli estate near San Francisco, aimed to ease rising tensions between the two countries. Despite no major breakthroughs, both leaders emphasized the importance of clear communication. Biden reiterated Reagan’s “trust but verify” approach and referred to Xi as a dictator. Xi emphasized the need for cooperation despite differences. They discussed contentious issues like Taiwan but reached consensus on areas like fentanyl control and military communication. The summit followed months of preparation, with Blinken prioritizing resuming military talks and addressing drug trafficking. The U.S. stressed the need to avoid accidental conflicts, citing past incidents. The meeting was seen as a positive step, though challenges in the U.S.-China relationship remain.

The Call

Trading activity and volumes this week will be lighter than usual owing to the U.S. Thanksgiving Holiday on Thursday. The Gold market saw solid bullish momentum since the CPI release on Tuesday and prices bounced off the recent low of 1935.00 an ounce. The rally took us ever so close to 2000.00 an ounce again. Investors are hoping inflation is under control and interest rates will start to fall as soon as May next year. We would expect Gold and Silver to trade in that range of Gold 1935.00-2000.00 and Silver 22.00 – 24.25 baring any major news on the war fronts.

Last Week in Review

Gold opened Sunday evening at 1940.50 spot and then traded lower through Monday morning making the weekly low at 1932.70. Gold then began to rally with the release of the U.S. CPI number on Tuesday morning and with other favorable economic indicators during the week and lasted  until making the high Friday morning at 1993.50 and finally settled at 1980.40 Friday afternoon.

Silver opened at 22.37 on Sunday evening and like Gold drifted lower into Monday morning making the weekly low at 21.88. Silver then rallied the rest of the week hitting its high on Friday of 24.18. With a little profit taking, silver finished off the week closing at 23.74.

  • The U.S. Dollar Index finished down sharply on the week  at 103.92.
  • The Gold/Silver Ratio closed much stronger for the week at 83.5 ounces of silver for 1 ounce of gold.
GoldSilver
Open1940.5022.27
High1993.5024.18
Low1932.7021.88
Close1980.4023.74
Last Week’s Gold and Silver Ranges

The information contained in this report is intended to provide market commentary and not as a recommendation or as a basis for investment decisions. The views expressed herein are the author’s and may differ from the views of others at Guardian International Gold. Guardian International Gold is a trader of Precious metals and this communication is to be considered an invitation to trade. Guardian International Gold makes our best effort to communicate reliable information but no express or implied warranty or representation as to its accuracy, completeness, or correctness may be taken.

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