GOLD & SILVER BREAK DOWN AND TEST KEY SUPPORT LEVELS
| Stuppler & Company is proud to provide our clients this Weekly Market Report (WMR). The report gives you my overview of the prior week’s precious metal and rare coin market activity and news. In each WMR, I share the current status of Gold and Silver along with their support and resistance levels. |
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This Week's Headlines: |
March 2024 was a great month for Gold investors, seeing Gold increase $169 per ounce. The first three weeks of April have also been impressive, with Gold up $158 per ounce. Gold closed last Friday at $2,391 per ounce, up $46 for the week. Gold tested the important $2,400 per ounce level a number of times last week as it stayed within a $2,360 to $2,400 trading range.
Key factors that affected the Gold price last week:
The Israeli / Iran exchange of missile attacks
Many major Central Banks report increases in Gold purchases
More indication that the Federal Reserve is not lowering interest rates in June
The U.S. Dollar Index reaching a new 2024 high
Interest rate on the 10-Year Treasury Bill reaching a new 2024 high
This coming week the following key U.S. economic indicators are being released on Thursday: Jobless Claims, Gross Domestic Product, and 1st Quarter Consumer Spending. Thursday could see increased volatility in the precious metal markets.
Gold continuing to consolidate and build a strong base between $2,360 and $2,400 per ounce will be important for the balance of the month. This would be bullish in the face of a stronger U.S. Dollar Index and higher interest rates.
Today:
A combination of geopolitical tensions lessening and expectations growing that the Federal Reserve will delay the central bank’s planned interest rate cuts is putting pressure on the Gold price. In early trading Gold broke down under $2,370 and kept on moving lower. At $2,350 a sizeable amount of short-sales hit the market and Gold reached a low of $2,330 before finding buyers.
After reaching a 2024 high of $29.83 per ounce April 12th and closing that day at $27.93, Silver showed excellent consolidation last week. Silver traded between $28 and $29 per ounce all of last week, closing on Friday at $28.70 per ounce. Demand for many of the popular Silver investment coins, Silver eagles, maple leafs, and Buffalo rounds, has picked up substantially and premiums are higher. The current Silver-to-Gold ratio has dropped to 83-to-1, and is still an outstanding value.
Today: Silver moved lower this morning with Gold, breaking below the key $28 per ounce support level, and testing support at the $27 level. After the March and April 2024 $6 increase in price, today we saw a $1.50 decline on major profit-taking.
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