Issue 1 – The week of February 14th, 2022
Geopolitics
All eyes are on Mr. Putin this week asking will he or won’t he invade Ukraine? Swedish intelligence reports say there are now up to 130,000 troops on the border. Russian war games with Belarusian forces have been in progress since last week. All signs point to some kind of Russian incursion into Ukraine, but what form that will take remains to be seen. If and when the Russian forces cross the border that will in all likelihood send both gold and silver much higher.
Supply chain shortages continue to affect global trade and energy prices as most of the northern hemisphere goes through the winter months. This factor continues to add upward pressure to inflation rates.
Resistance and Supports for the Upcoming Week
Gold resistance and support levels
Resistance 1877 1868 1860
Support 1848 1836 1830
Silver resistance and support levels
Resistance 23.87 24.03 24.31
Support 23.36 23.02 22.79
Reports of note due out this week:
- Monday US producer price index. Markets will be looking for further signs of rampant inflation to confirm a March interest rate hike from the US Federal Reserve
- Tuesday US crude oil stocks. Tight global supplies continue to drive the price of oil closer to $100 a barrel.
- Tuesday US retail sales another indicator of inflation
- Wednesday release of FOMC minutes from the last meeting. Markets looking for future FED intentions.
Last week in Review
Gold had positive trading sessions for four of the five days last week. The main drivers were both macroeconomic and geopolitical factors that came to a head combining to give gold a strong move by the time Friday’s close came. Last week markets were concerned about the US Consumer Price report released on Friday. The report showed that inflation had a reading of 7.5%, a level not seen since 1982. On the geopolitical front, increasing tensions about the situation between Ukraine and Russia continue to create an environment for investors to flee into gold. Investors also flooded into silver on Friday driving it higher.
Last Week’s Gold Range
Open. 1808
High. 1865
Low. 1807
Close. 1859
Last Week’s Silver Range
Open. 22.56
High. 23.73
Low. 22.52
Close. 23.59
Watch our Twitter feed @guardiangoldco for updated resistance and support levels throughout the week.
