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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 - September 22, 2017
In the precious metals markets this week...
GOLD

Monex spot gold prices opened the week at $1,310 . . . traded as high as $1,314 on Wednesday and as low as $1,287 on Thursday. . . and the Monex AM settlement price on Friday was $1,295, down $15 for the week. Gold support is now anticipated at $1,285 then $1,248, and then $1,215. . . with resistance anticipated at $1,306, then $1,322, and then $1,360.

SILVER

Monex spot silver prices opened the week at $17.33 . . . traded as high as $17.37 on Monday and as low as $16.81 on Thursday. . . and the Monex AM settlement price on Friday was $16.92, down $0.41 for the week. Silver support is now anticipated at $16.90, then $16.72, and then $16.35. . . and resistance anticipated at $17.09, then $17.38, and then $17.65.

PLATINUM

Monex spot platinum prices opened the week at $964. . . traded as high as $967 on Monday and as low as $931 on Thursday. . . and the Monex AM settlement price on Friday was $932, down $32 for the week. Platinum support is now anticipated at $930, then $888, and then $865 . . . and resistance anticipated at $946, then $965, and then $988.

PALLADIUM

Monex spot palladium prices opened the week at $931. . . traded as high as $934 on Monday and as low as $898 on Wednesday. . . and the Monex AM settlement price on Friday was $912, down $12 for the week. Palladium support is now anticipated at $913, then $888, and then $865 . . . and resistance anticipated at $931, then $955, and then $977.

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 Harriet Torry in the 9/21 Wall Street Journal Yellen's Next Steps? She Isn't Saying

"Looking to December:
Federal Reserve officials didn't raise short-term interest rates Wednesday, but a December increase remains on the table. Meanwhile, the central bank said it would initiate in October its plan to shrink its securities holdings. Here are key takeaways from the Fed's two-day policy meeting:

The Fed's summary of economic projections suggests officials are still on track to raise short-tern interest rates once more this year, most likely at the Dec. 12-13 meeting when Chairwoman Janet Yellen is schedule to hold her next press conference.

Fed officials expect to raise rates three more times next year, a forecast unchanged from when they last submitted economic projections in June.

Interest Rates:
Fed officials brought down their expectation from where they see interest rates settling in the longer run, to 2.75% from an earlier forecast of 3%. The drift downward reflects a lowering in officials' view of the so-called neutral rate, an underlying interest rate that is consistent with the economy operating at its full potential and expanding without overheating. Ms. Yellen said that 'because the neutral rate currently appears to be quite low by historical standards, the federal-funds rate would not have to rise much further to get to a neutral policy stance.'"

...And From Andrew Hecht in 9/18 seekingalpha.com Precious Metals Are Going To Get a Lot More Precious - Don't Let The Current Slump Confuse You

"In their heyday of acceptance and utility, governments employed gold and silver as comfort for their paper currencies. While countries around the world abandoned their policies of backing money with the precious metals long ago governments, central banks, monetary authorities, and even supranational institutions still hold gold as part of the foreign currency reserves.

Gold and silver have been monetary instruments for thousands of years. Since the 1970s both metals have experienced periods where they come into and go out of vogue in markets. In the late 1990s, when the precious metals were experiencing a period of low prices and disrespect, the Bank of England decided to sell half of the nation's reserves. The powers in charge at the time saw the yellow metal as a barbarous relic of the past and sold those reserves at prices below $300 per ounce. The egg on their faces when gold moved to more than six times the price of their sales in just over a decade is likely to make any other central bank or monetary authority to think twice before following a similar path.

After trading to over $1920 per ounce in 2011, the price of gold fell to $1046.20 in December 2015. Since then, the yellow metal has been making higher lows, and at over $1300 per ounce, gold has been leading the charge in the precious metal sector over recent weeks.

Precious metals have a habit of taking the stairs to the upside and the elevator down. The price action at the start of this week was a continuation of that pattern of trading in the sector. However, the price drop over recent sessions has been on less than stellar volume, and it appears that open interest has been falling alongside the prices of these lustrous metals. The decline in the metric when prices are falling does not support an emerging downtrend in the precious metals sector. It is possible that buyers in the gold market became overstimulated during the recent rally and now weak holders of gold and other precious metals are heading for the exit as the trajectory of the rally ran out of steam.

Meanwhile, nothing has changed much on the geopolitical landscape that remains highly supportive of the precious metals sector.

The bottom line is that the geopolitical landscape continues to provide not one, but many supportive potentials for the price of gold and other precious metals as events could cause a flight to quality in the blink of an eye over coming weeks and months.

Another supportive factor for the precious metals is the continuation of weakness in the dollar.

The path of least resistance for the U.S. dollar has been lower since January. What began as a correction to the downside has become a bear market in the reserve currency of the world. The dollar is the benchmark pricing mechanism for commodities, and precious metals are no exception. The weaker dollar is historically bullish and provides support for the prospects for gold, silver, platinum, and palladium prices."

...And From Michael Wursthorn and Riva Gold in the 9/22 Wall Street Journal Stocks' Winning Streak Comes to an End

"The Dow Jones Industrial Average and the S&P 500 ended a streak of record closes Thursday, as investors took stock of the Federal Reserve's renewed commitment to raise interest rates again this year.

Eight of the 11 major S&P 500 sectors ended the day lower, with the steepest declines among technology and consumer-staples shares.

Some investors and analysts attributed the stall in the stock market to uncertainty after the Fed suggested Wednesday that it could raise interest rates for the third time this year in December. A streak of soft inflation data recently had made some investors skeptical the Fed would raise rates again in 2017. That the central bank signaled otherwise caught some off-guard, portfolio managers said."

Last update: Sep 22, 2017 12:40:16 PM

This is not a recommendation to buy or sell.