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Precious Metals Review

Market information and news is critical for precious metal investing. However, many investors have limited time to sort through the massive amounts of market data and gold, silver and platinum news. The Monex Precious Metals Review consolidates the week's activities in a concise snapshot of the precious metal markets.

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PRECIOUS METALS REVIEW - MAY 29, 2015

In the precious metals markets this week . . .  

GOLD:
Monex spot gold prices opened the week at $1,204 . . . traded as high as $1,208 on Monday and as low as $1,181 on Thursday . . . and the Monex AM settlement price on Friday was $1,190, down $14 for the week.  Gold support is now anticipated at $1,175, then $1,140, and then $1,100 . . . with resistance anticipated at $1,192, then $1,210, and then $1,227.

SILVER:
Monex spot silver prices opened the week at $17.04 . . . traded as high as $17.15 on Monday and as low as $16.55 on Thursday . . . and the Monex AM settlement price on Friday was $16.72, down $.32 for the week.  Silver support is now anticipated at $16.54, then $16.10, and then $15.80 . . . and resistance anticipated at $16.82, then $17.06, and then $17.35.

PLATINUM:
Monex spot platinum prices opened the week at $1,149 . . . traded as high as $1,152 on Monday and as low as $1,111 on Thursday . . . and the Monex AM settlement price on Friday was $1,114, down $35 for the week.  Platinum support is now anticipated at $1,108, then $1,094, and then $1,068 . . . and resistance anticipated at $1,127, then $1,156, and then $1,178.

PALLADIUM:
Monex spot palladium prices opened the week at $781 . . . traded as high as $788 on Monday and as low as $778 on Friday . . . and the Monex AM settlement price on Friday was $778, down $3 for the week.  Palladium support is now anticipated at $772, then $753, and then $729 . . . and resistance anticipated at $785, then $803, and then $824.

QUOTES OF THE WEEK:

From Greg Hunter, in a posting on his USAWatchdog website on May 27th:

''Recent Bloomberg analysis says if China backed its currency with gold, the price would need to be 50 times higher than it is today.  According to Bloomberg, that would be a gold price of around $64,000 per ounce, which is much more than gold expert Jim Sinclair predicted a few years ago.  Financial writer Bill Holter weighs in, 'That was a few years ago, before some of the QE, and Jim has said that $50,000 gold may turn out to be laughably low. . . . I think it is very curious that Bloomberg would run this because Bloomberg is as mainstream Wall Street as you are going to get. . . . It would be my guess that Bloomberg has some type of information that China is going to announce their holdings.  I can show you that China has 10,000 tons of gold.  That's pretty easy to do.  I use the figure of 10,000 tons, and oddly enough, that is the figure that Bloomberg used.'

So, what does that mean to the U.S.?  Holter says, 'After they make an announcement that they have all this gold, people are going to say, wait a minute, where did they get all that gold? . . . It's come from Western vaults, the biggest Western vault is the U.S.  So, the marketplace will make a judgment between the yuan and the dollar. . . . This is definitely a scheduled event in the fall, and the speculation has been that the Chinese may announce prior to that in order to give the IMF time to evaluate the data.  From my point of view, the Chinese may make that announcement to give it a push.  The dollar versus the yuan is going to depreciate greatly.  You could see a 20% to 30% move in the dollar (downward.)  The yuan is going to strengthen.' ''

. . . and from an editorial on the ''Issues & Insights'' page of Investor's Business Daily on May 27th:

''Spending: In the 28 months since the budget sequester went into effect, the federal government has added more than $1.7 trillion to the national debt.  No wonder lawmakers want out of this fiscal straitjacket.

'Washington is ready to spend.'  That's the headline in a story that ran at TheHill [website] on Tuesday.''

''A new Government Accountability Office report found that officials can't account for the $1.2 billion spent each year on mobile phones for government workers.  That's billion with a 'b.'

Other GAO reports turned up almost $6 billion in fraudulent refund checks the IRS sends out annually, $60 billion that Medicare wastes on improper payments to doctors and hospitals, plus $18 billion in Medicaid waste.

Over the years, the GAO has found 440 duplicative, ineffective and bloated programs that could be cut back or eliminated to save $125 billion.  Citizens Against Government Waste has gone much further, putting together a list of easily eliminated programs that would save $648 billion next year alone.

Lawmakers should focus on this before they cry about the lack of 'wiggle room' in the federal budget.''

. . . and from Richard Russell, founder of Dow Theory Letters, in comments posted on his website on May 27th:

''Many successful analysts are predicting a collapse in the US dollar.  People forget that the US dollar is a fiat currency and history tells us that ultimately all fiat currencies end up in the trash pile.  If that's the fate of the US dollar, there will be a rush to hedge portfolios with physical silver and gold.

Ironically, most Americans hold no physical silver and gold.  Meanwhile, JP Morgan is ready to pull the trigger at any time, ending its short position on the Comex and watching its huge position in silver (380 million ounces) surge like a coiled spring to higher levels.  Advice -- Take some sort of a position in physical silver.  Silver is selling below its cost of production.  It's hated and is selling at bargain prices.

I can't prove it but I suspect that fireworks lie behind the current trading range.''

. . . and from Mary Anne and Pamela Aden, editors of The Aden Forecast newsletter, in a weekly update posted on their website on May 28th:

''The dollar bounced up further this week, and so did bond prices.  The ongoing concerns about potential U.S. interest rate hikes and worries about Greece continue to weigh on the markets.

This put pressure on the currencies as they all declined this week, especially the yen, it fell to a 12 year low today.  The resource currencies were also weak.  The Canadian dollar and the euro look similar.  Both are bottoming by staying above .7800 and 1.05, respectively.''

''The dollar index could bounce up further and it's stable above 95, but it still looks like a several month top is forming.

The bond market is also poised to rise further.  The downward correction is over, and bonds are rising from a bombed out level . . . Bonds are firm as long as the 30 year yield stays below 3.07%.''

''Gold, silver, gold shares, copper and crude all declined this week with the stronger dollar.  But the decline has been moderate, and gold's C rise is not over yet.  Gold is firm by staying above $1175, and silver is too above $16.  The XAU index is firm in a 6+ month bottoming action by staying above 66.  

Copper and crude oil are under pressure for now below $2.90 and $59, respectively.  Palladium is consolidating and is firm above $770.  

. . . and from Jeffry Bartash, in a posting on the MarketWatch website on May 29th:

''The economy contracted in the first quarter for the second straight year, a disappointing start that could foil the chance of the U.S. reaching 3% growth in 2015 for the first time in a decade.

Gross domestic product -- the value of everything a nation produces -- shrank by 0.7% annual rate from January to March, the Commerce Department said Friday.  Last month the government originally had reported a tepid 0.2% increase in GDP.''

''A soaring dollar has curbed U.S. exports by making American goods and services more expensive in other parts of the world.  And the U.S. energy industry has cut back on new drilling platforms and other expensive equipment amid a plunge in oil prices.''

''Another stunningly weak first quarter, meanwhile, has generated fresh doubts about the accuracy of the government's official GDP tally.  The GDP report appears to underestimate growth in the first quarter, and overestimate growth in the second and third quarters, many analysts contend.

Whatever the case, the longer-term trend is inescapable.  The U.S. recovery now entering its seventh year is the weakest since the end of World War Two.  The slow start in 2015 is also likely to doom the U.S. to another year of sub-3% growth.''

Last update: May 29, 2015 11:08:41 AM

This is not a recommendation to buy or sell.