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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.

PRECIOUS METALS REVIEW - August 18, 2017
In the precious metals markets this week...
GOLD

Monex spot gold prices opened the week at $1,273 . . . traded as high as $1,301 on Friday and as low as $1,267 on Monday. . . and the Monex AM settlement price on Friday was $1,286, up $13 for the week. Gold support is now anticipated at $1,290 then $1,272, and then $1,252. . . with resistance anticipated at $1,292, then $1,306, and then $1,338.

SILVER

Monex spot silver prices opened the week at $16.98 . . . traded as high as $17.30 on Friday and as low as $16.54 on Tuesday. . . and the Monex AM settlement price on Friday was $17.00, up $0.02 for the week. Silver support is now anticipated at $16.90, then $16.55, and then $16.20. . . and resistance anticipated at $17.23, then $17.48, and then $17.80.

PLATINUM

Monex spot platinum prices opened the week at $973. . . traded as high as $990 on Friday and as low as $953 on Tuesday. . . and the Monex AM settlement price on Friday was $980, up $7 for the week. Platinum support is now anticipated at $965, then $944, and then $930 . . . and resistance anticipated at $987, then $1,006, and then $1,040.

PALLADIUM

Monex spot palladium prices opened the week at $896. . . traded as high as $930 on Friday and as low as $882 on Tuesday. . . and the Monex AM settlement price on Friday was $921, up $25 for the week. Palladium support is now anticipated at $913, then $901, and then $882 . . . and resistance anticipated at $954, then $979, and then $1,000.

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 Eric Parnell in 8/16 seekingalpha.com A Correction Is Already Under Way

"Many investors have been contemplating the potential for a U.S. stock market correction starting some time over the next couple of months after what has been a remarkable year to date. Whether such a pullback on the headline benchmarks actually comes to pass remains to be seem. But in many respects, a correction in U.S. stocks has already been underway for nearly a month now.

The U.S. stock market has a "big" problem. The S&P 500 Index (SPY) continues to perform exceptionally well. Through mid-August, the headline U.S. stock market benchmark continues to set fresh new all-time highs with each passing week. And the trend remains definitely higher even despite some moments of notable weakness in recent trading days. Ont the surface, the U.S. stock market looks as bulletproof as ever.

Each U.S. market segment has moved with a very high correlation with one another. That is up until just a few weeks ago. For while the headline S&P 500 Index (VOO) continues to make its way the upside, both mid-cap and small-cap stocks have turned definitively lower. This is a notable deviation across the size spectrum in the U.S. stock market."

...And from David Harrison in 8/17 Wall Street Journal Fed Split On Plan For Next Rate Hike

"New concerns over sagging inflation in the past few months are driving a split at the Federal Reserve about the timing of the next increase in interest rates.

The internal debate raises the possibility that the Fed could deviate from its plans for a third rate increase this year. Soft inflation has continually bedeviled Fed officials, forcing them to pull back on plans to raise rates multiple times in 2015 and 2016.

Minutes from the Fed's most recent meeting July 25-26, released Wednesday, reveal growing concern recent soft inflation numbers could be a sign that something has fundamentally changed in the economy, leading them to suggest holding off on raising rates again for the time being.

But officials also agreed, to soon begin the yearlong process of shrinking the central bank's securities holdings, perhaps as early as September, according to the minutes released following the customary three-week lag.

For now, the position of Fed Chairwoman Janet Yellen and other top Fed leaders hasn't changed. In congressional testimony last month, she dismissed weakening inflation as a temporary phenomenon caused by cheaper cellphone plans and prescription drugs.

But the minutes suggest Chairwomen Yellen's position has skeptics within the Fed, and officials have publicly aired their disagreement since the meeting."

...And from Ira Iosebashivili in the 8/14 Wall Street Journal Gold Takes Run at $1,300

"A weak U.S. inflation print may be just what gold prices need to finally stay above $1,300.

Gold prices are making their third run at $1,300 a troy ounce this year, as rising tensions between the U.S. and North Korea spark demand for haven assets.

Last week, gold for August delivery climbed 2.3% to $1,287.70 on the Comex division of the New York Mercantile Exchange. The metal's price has now climbed four of the past five weeks.

Capital Economics said that gold is a preferable hedge against those geopolitical events that directly involve the U.S.

"Investors are more likely to seek refuge in an asset like gold which bears no country risk and benefits when the dollar depreciates," analysts at the firm said in a not to clients.

Until there is some certainty as to how the geopolitical situation will evolve, gold prices are likely to remain well supported and could even rise above $1,350 per ounce, they wrote. It hasn't been that high since last September."

...And from Kopin Tan in the 8/14 Barron's The Bad News Buck

"The buck has declined against every major currency in 2017; it's down 11% against the euro, 7% against the yen, and 5% against the pound sterling. .

With the U.S. dollar index down to its lowest level in more than a year, odds are increasing that the dollar could bounce back in the short tern. But don't expect any rebound to last.

When we argued early this year that the dollar could weaken (see "Why the Dollar is Likely to Fall This Year," Feb. 4), the dollar index had just risen for five straight years, and the consensus on the buck was very bullish. That sentiment has retreated and is now far less extreme, but it's still more neutral than negative. Against this backdrop, geopolitical skirmishes can accentuate the dollar's status as a safe haven. Congress will have its hands full when it returns from summer recess, and its recent legislative track record doesn't exactly inspire confidence, but resolving the U.S. debt ceiling could also nudge the dollar up.

Over the longer term, however, the dollar most likely will continue to retreat, at least against the euro, said David Kelly, chief global strategist at J.P. Morgan Funds, recently outlined several reasons why. For a start, the U.S. is running a current trade account deficit that's about 2.5% of our gross domestic product, while the euro zone boasts a trade surplus that's 3.3% of GDP. "When Americans buy German cars or French wine, they have to first sell dollars and buy euros," effectively increasing the supply of dollars and the demand for euros, he explains. "A steady U.S. trade deficit and European trade surplus should push the dollar down and the euro up.""

Last update: Aug 18, 2017 12:00:28 PM

This is not a recommendation to buy or sell.