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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.



In the precious metals markets this week . . .  

Monex spot gold prices opened the week at $1,193 . . . traded as high as $1,193 on Monday and as low as $1,169 on Friday . . . and the Monex AM settlement price on Friday was $1,174, down $19 for the week.  Gold support is now anticipated at $1,170, then $1,162, and then $1,148 . . . with resistance anticipated at $1,178, then $1,206, and then $1,222.

Monex spot silver prices opened the week at $16.13 . . . traded as high as $16.21 on Monday and as low as $15.64 on Friday . . . and the Monex AM settlement price on Friday was $15.78, down $.35 for the week.  Silver support is now anticipated at $15.60, then $15.34, and then $15.00 . . . and resistance anticipated at $15.93, then $16.30, and then $16.83.

Monex spot platinum prices opened the week at $1,073 . . . traded as high as $1,087 on Thursday and as low as $1,061 on Monday . . . and the Monex AM settlement price on Friday was $1,082, up $9 for the week.  Platinum support is now anticipated at $1,053, then $1,027, and then $1,001 . . . and resistance anticipated at $1,088, then $1,111, and then $1,175.

Monex spot palladium prices opened the week at $703 . . . traded as high as $703 on Monday and as low as $671 on Friday . . . and the Monex AM settlement price on Friday was $681, down $22 for the week.  Palladium support is now anticipated at $670, then $655, and then $622 . . . and resistance anticipated at $699, then $717, and then $760.

* * * ANNOUNCEMENT * * *

An intriguing new 12-minute ''Metals Market Update'' video, featuring Monex VP Mike Maroney discussing how current events may impact the precious metals markets in the weeks ahead, has been posted to the Monex website.  Click this link to view the new video:  Link to Video


From Thomas G. Donlan, in his ''Editorial Commentary'' column in the June 22nd edition of Barron's magazine:

''Based on current law, the CBO projects that the economy will grow a little faster in the next few years than our national appetite for health care, Social Security benefits, and debt.  By 2020, however, our social needs and political demands will once again exceed our ability to produce and willingness to tax -- even if we do not cut taxes or enact big new programs in the next few years.''

''We know the basic conditions in which strong economic growth occurs.  Chief among them is a government that does not do too much -- unlike the way the U.S. government has been overreaching since at least 2008 (arguably since 1990 or 1965 or 1933).

Restoring market incentives should be the first priority of the next U.S. government.  Taxes and regulation are excessive and too complex, and there are too many loopholes creating inequality.  Retirement and medical programs are too generous to those who could provide for themselves.  Legalizing 11 million immigrants already here and welcoming still more productive workers would also help.

A nation that can't balance its checkbook is not likely to shift from consumption to investment.  In the long run, it will die.''

. . . and from Tatyana Schumsky, in a column in The Wall Street Journal on June 23rd:

''A strong dollar is pressing down on platinum.

The precious metal, whose uses range from car-exhaust filters to jewelry, tumbled to a six-year low on Monday, weighed down by a surge in supplies that stems in part from the South African currency's sharp depreciation against the U.S. dollar.''

''Some investors are betting that prices in the $4 billion platinum-futures market will continue their slide as supplies flood the market.  A weaker rand lowers costs for South Africa's miners, shielding them from the impact of lower world platinum prices, which are denominated in dollars, and giving them an incentive to keep producing.''

''Other investors are wagering that platinum will rebound together with European car sales.  Much of the world's platinum goes into diesel-burning vehicles, which dominate European roads.  European car registrations, a proxy for sales, rose 6.9% in April to 1.17 million units, the best sales volume for April since 2009, according to the European Automobile Manufacturers' Association.''

''But other traders say swelling platinum supplies in response to foreign-exchange shifts will play a bigger role in pushing prices lower than any support from Europe's auto market.''

. . . and from John Tamny, in a ''Perspective'' editorial column in Investor's Business Daily on June 23rd:

''Empowering politicians to act during times of alleged strife blunts the curative power of recessions.  Lest we forget, it's during boom times that the individuals who populate the economy develop bad habits, as do companies while making bad hires, and then investors get flabby on the way to funding Webvan and others like it.

Recessions -- and this is why they're so essential -- are a signal that individuals are relieving themselves of bad habits, companies are freeing workers from employment situations that were restraining their ability to achieve, and the Webvans of the world are being starved of capital so that the Googles can receive it in abundance.

In short, when governments fight recessions, they're robbing us all of the very economic cleanse that, if left alone, will author a major economic boom.  Absent the worthless number that is GDP, we might not have to suffer as much the meddling that so plainly weakens us.''

''. . . let's consign the embarrassment that is GDP to the dustbin of history -- not just because it's flawed on its best day, but because even if it's occasionally right, it emboldens politicians to act at the very moment when we need them to do the least.''

. . . and from Ken Hoffman of Bloomberg Intelligence, in an interview on TheStreet website on June 25th:

''Could gold, the world's longest running currency be used to create a new order in global currencies?  The Chinese central bank is said to be considering backing its yuan with the yellow metal.

This move, says Ken Hoffman, global head of metals and mining research for Bloomberg Intelligence, would be a 'game changer.'

Why would China consider such a move?  Hoffman explains that Chinese policy makers are already trying to establish the yuan as a reserve currency, and backing it with gold would help attract foreign capital.

China is expected to receive approval from its central bank for a yuan-denominated gold fix, with a potential for an announcement as early as next week.''

''Moving to a gold standard may also be a question of power for China.  Hoffman says that when the U.S. adopted a gold standard after World War II, it emerged as the main power in the International Monetary Fund.  In 1971, the U.S. ended the use of the gold standard and rendered the dollar a fiat currency.

If China decides to go into some form of a gold standard, Hoffman says it would make the rest of the world view the metal as a currency again.''

. . . and from Jim Rogers, in an interview posted on the MarketWatch website on June 26th:

''In the past, when there are collapses of confidence in government or currencies, people flee to gold.  Part of the problem is that many people consider gold to be holy.  They are mystical about it.  Some mystics are surprised that gold goes down at all.  When the next problem comes, people will lose confidence in the government, central banks, and paper money.  That's when gold goes up the most.  That's also when the central banks will do anything to save the day.''

''In 2008, we had a problem because debt was piled so high, but now the worldwide debt is much higher than it was then.  In the U.S., the Fed's balance sheet has gone up five or six times.  Worldwide, all of these countries are talking about austerity, but they continue to run up higher and higher debt.  Unfortunately, the world doesn't have the luxury to lower interest rates much more.  To pump up the stock market, all they can use is printed money.  The next time around will [be] pretty horrible for all of us.'' 

Last update: Jun 26, 2015 11:13:05 AM

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