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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 - April 21, 2017

In the precious metals markets this week . . .  

GOLD:
Monex spot gold prices opened the week at $1,287 . . . traded as high as $1,293 on Monday and as low as $1,274 on Wednesday. . . and the Monex AM settlement price on Friday was $1,286, down $1 for the week.  Gold support is now anticipated at $1,280 then $1,251, and then $1,221. . . with resistance anticipated at $1,292, then $1,307, and then $1,345.

SILVER:
Monex spot silver prices opened the week at $18.54 . . . traded as high as $18.54 on Monday and as low as $17.79 on Friday. . . and the Monex AM settlement price on Friday was $17.89, down $0.65 for the week.  Silver support is now anticipated at $17.74, then $17.34, and then $16.81. . . and resistance anticipated at $18.16, then $18.45, and then $19.10.

PLATINUM:
Monex spot platinum prices opened the week at $980. . . traded as high as $991 on Monday and as low as $965 on Wednesday. . . and the Monex AM settlement price on Friday was $976, down $4 for the week.  Platinum support is now anticipated at $965, then $938, and then $888 . . . and resistance anticipated at $978, then $993, and then $1,007.

PALLADIUM:
Monex spot palladium prices opened the week at $796. . . traded as high as $804 on Thursday and as low as $769 on Tuesday. . . and the Monex AM settlement price on Friday was $792, down $4 for the week.  Palladium support is now anticipated at $788, then $767, and then $745 . . and resistance anticipated at $804, then $818, and then $835.

QUOTES OF THE WEEK:

Want to know the latest on gold and silver in this age of uncertainty?

Monex VP Mike Maroney offers analysis and commentary on recent activity in the economy, geopolitics and the precious metals markets.  Check out video here http://www.monex.com/age-of-uncertainty/

From Eddie Van Der Walt and Ranjeetha Pakiam in 4/19 bloomberg.com  Gold's Top Forecaster Says Prices May Hit $1,350 by Year-End

''Gold will end the year higher, spurred by faster inflation and political tensions in Russia, Syrai and North Korea, according to Intesa Sanpaolo SpA, the best forecaster for the metal last quarter.

Prices could take a v-shaped path this year, with a swoon coming mid-year as the Federal Reserve raises U.S. Interest rates, said Daniela Corsini, an analyst at the bank.  Gold will likely bounce back by year-end, reaching a high of $1,350 an ounce in the fourth quarter, she predicted.

That would leave bullion at the highest level since September.  Prices have risen 12 percent this year, supported by inflation concerns and a mix of geopolitical worries, including North Korea's nuclear ambitions and U.S. airstrikes in Syria and Afghanistan.

''Markets will surely remain nervous about this uncertainty,'' she said by phone from Milan on Tuesday. ''And if economic data in the U.S. remains strong, then gold will regain its role as an inflation hedge''

Silver could climb to $19 an ounce by year-end, compared with Wednesday's price of $18.2395 an ounce, according to Corsini.  The metal has gained 15 percent this year.

In Europe, upcoming elections in France, Germany, and the U.K. will provide an impetus for gold buying.''

. . . And from the CPM Group April Precious Metals Market Outlook

''There are various factors that warrant buying gold as an investment.  A break out from the $1,240 and $1,260 range should be treated as a buying opportunity by investors.  If prices are able to settle about $1,264 they could rise initially toward $1,275 driven by momentum coupled with various macroeconomic and political factors.  If prices are able to break above $1,275 the next resistance level would be $1,300.

Silver prices climbed out of the bearish sentiment that weighed them down during the first half of March, rising from a monthly low of $16.92 on 15 March to move mostly between $18.00 and $18.40 at the time of this report.  

Despite a dip earlier in the month, palladium prices rebounded and reached an intraday high of $815.80 on 24 March, the highest level since 10 March 2015 when the intraday high hit $824.80.  Prices recorded a 3.6% increase at the end of March from the end of February, the best performer on the precious metals complex.

Much of the price strength came from a sharp increase in gross long positions in palladium held by institutional investors.  Investors appeared to have taken direction from the relative softness in the U.S. dollar after the Federal Reserve raised interest rates for the third time in the past 16 months at its March FOMC meeting but indicated there would be no pickup in the pace of monetary tightening.  A relatively cheaper U.S. dollar makes dollar-denominated commodities such as palladium more appealing to investors.''

. . . And from Akan Otani and Mike Bird in 4/19 Wall Street Journal  Stocks Sink Amid Political Uncertainty

''Disappointing earnings reports add to retreat, with health-care and bank shares tumbling.

U.S. stock indexes fell Tuesday, weighed down by a slide in shares of banks and healthcare companies.

Investors have backed away from stocks in recent weeks while picking up government bonds as tepid economic data, as well as political tensions around the world, stocked demand for safer assets.

A series of disappointing earnings reports contributed to the retreat in stocks Tuesday, investors and analysts said.  With expectations waning for passage of pro-growth policies from the Trump administration, many say continued signs of corporate health will be key to stocks rising.

''The market's taken a bit of a pause lately, and part of that has to do with markets in the U.S. being at the high end of valuations'' said Market Watkins, regional investment strategist at the Private Client Group at U.S. Bank in Park City, Utah.  ''If we see earnings that miss or are below expectations, that could be a warning sign.'''

. . . And from Sethuraman N R in the 4/19 Gold Report in reuters.com PRECIOUS-Gold Edges Down On Profit-Taking, but Geopolitical Worries Support

''Gold slipped on Wednesday on wild profit-taking, but geopolitical concerns about North Korea and nervousness ahead of the French presidential election lent support to the safe-haven asset.

''The whole situation for gold is more than optimistic because of the geopolitical tensions aroused by North Korea with the interest rate hike expectations coming down,'' said Market To, head of research at Hong Kong's Wing Fung Financial Group.  ''We see $1,280 as the gravity around which the trading range will be built and prices will move between $1,276-$1,310.''

''Gold has been stuck at a high level and seeing a bit of profit-taking...Prices should adjust and rise again,'' said a Shanghai-based trader.

Gold should find support around $1,276 to restrict further downside moves in the short term, while the metal is well positioned to test $1,300 levels as geopolitical concerns underpin its safe-haven status, said MKS PAMP Group trader Sam Laughlin.''

Last update: Apr 21, 2017 12:34:00 PM

This is not a recommendation to buy or sell.