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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 - JULY 25, 2014

In the precious metals markets this week . . . 

GOLD:
Monex spot gold prices opened the week at $1,316 . . . traded as high as $1,317 on Monday and as low as $1,288 on Thursday . . . and the Monex AM settlement price on Friday was $1,303, down $13 for the week.  Gold support is now anticipated at $1,292, then $1,280, and then $1,261 . . . with resistance anticipated at $1,305, then $1,334, and then $1,347.

SILVER:
Monex spot silver prices opened the week at $21.06 . . . traded as high as $21.08 on Tuesday and as low as $20.35 on Thursday . . . and the Monex AM settlement price on Friday was $20.60, down $.46 for the week.  Silver support is now anticipated at $20.44, then $20.10, and then $19.80 . . . and resistance anticipated at $20.82, then $21.27, and then $21.63.

PLATINUM:
Monex spot platinum prices opened the week at $1,496 . . . traded as high as $1,497 on Monday and as low as $1,467 on Thursday . . . and the Monex AM settlement price on Friday was $1,479, down $17 for the week.  Platinum support is now anticipated at $1,465, then $1,428, and then $1,385 . . . and resistance anticipated at $1,515, then $1,553, and then $1,595.

PALLADIUM:
Monex spot palladium prices opened the week at $883 . . . traded as high as $885 on Monday and as low as $868 on Thursday . . . and the Monex AM settlement price on Friday was $880, down $3 for the week.  Palladium support is now anticipated at $858, then $835, and then $817 . . . and resistance anticipated at $890, then $905, and then $930.

QUOTES OF THE WEEK:

From Bill White, in the ''Editorial Commentary'' column in the July 21st issue of Barron's magazine:

''A tax system based largely on the 'contributions of the rich' may be desirable in the abstract, but it doesn't pay for the level of spending now appropriated by Congress, much less the soaring costs of debt service and Medicare.  Interest expense will rise sharply with higher interest rates and total debt.  Meanwhile, Medicare costs will skyrocket.  The population over 65 will increase from 40 million in 2010 to 80 million in 2030, and the number of those over 85 will triple.

Federal debt is now nine times greater than revenue legally available for debt service.  The U.S. last maintained its debt at that high level in the 1790s.

In 2011, when calling on Congress to restore fiscal discipline, [President] Obama wisely noted that 'progressives have an obligation to show that the nation can afford the policies we espouse.'  There is nothing progressive about federal spending that's much higher than the revenue produced by the taxes that progressives embrace or that other Americans are willing to pay.''

. . . and from Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on July 21st:

''Currently, I'm more interested in capital preservation than capital appreciation.

To do that I've positioned myself with silver and gold.  I believe gold is currently locked in a trading range of 1200 to 1400.  If gold breaks out above 1400, that's fine with me, but I won't be selling my gold.  Sell it for what?  Sell it for the paper that I originally swapped for my gold because I didn't trust the paper (Federal Reserve notes)?  I'm aware of history.  History tells me that all fiat money ends worthless.

But what if gold breaks below its trading range? -- below 1200?  I'll hang on to my gold.  Why?  Because I know that gold, unlike a stock, can't go bankrupt.  And I know that gold will always be considered an item of wealth.  I may even buy more gold if it slips below 1200.

The history of mankind is war and inflation.  Over the decades, gold has protected mankind from inflation.  In my lifetime, gold has risen from $20 in 1925 to $1900 three years ago.

Conclusion -- buy gold, hold it for a lifetime, and when you're tired of looking at it -- give it to your kids.''

. . . and from Mary Anne and Pamela Aden, editors of The Aden Forecast, in their weekly update posted on their website on July 24th:

''Since last time, world tensions have become a wild card.  This is affecting many of the markets and it could continue.  The downing of the Malaysian passenger plane over Ukraine has resulted in a deterioration in Russian and Western relations not seen since the Cold War.  Fighting in Gaza is also adding fuel to the fire . . . ''

''The U.S. dollar index is being boosted by global tensions and better economic signs, especially in the labor sector.  Still, the dollar index is neutral at best.  It would show signs of real strength if it can rise and stay above 81 and renewed weakness below 80.25.  Meanwhile, the currencies are volatile.  The British pound is still strong above 1.69.  But if you have the euro, sell it.  For now, the Swiss franc, Aussie and New Zealand dollars are still okay to hold.

The firmer U.S. dollar and better economic news have put downward pressure on gold and the other precious metals.  Palladium, however, is in a league of its own, reaching a 14 year high last week.  It'll remain very strong even if it declines to $835.

Gold and silver essentially resisted near their 65 week moving averages, closing at a five week low today.  Both could decline to $1280 and $20, respectively, and they'd still be firm within the C rise . . . Buy and/or keep our recommended metals positions.''

Last update: Jul 25, 2014 11:25:54 AM

This is not a recommendation to buy or sell.