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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 $1,183 . . . traded as high as $1,211 on Thursday and as low as $1,183 on Monday . . . and the Monex AM settlement price on Friday was $1,200, up $17 for the week.  Gold support is now anticipated at $1,198, then $1,192, and then $1,167 . . . with resistance anticipated at $1,206, then $1,217, and then $1,237.

Monex spot silver prices opened the week at $16.80 . . . traded as high as $17.20 on Thursday and Friday and as low as $16.76 on Monday . . . and the Monex AM settlement price on Friday was $17.09, up $.29 for the week.  Silver support is now anticipated at $16.86, then $16.42, and then $16.21 . . . and resistance anticipated at $17.14, then $17.35, and then $17.80.

Monex spot platinum prices opened the week at $1,144 . . . traded as high as $1,163 on Thursday and as low as $1,136 on Tuesday . . . and the Monex AM settlement price on Friday was $1,146, up $2 for the week.  Platinum support is now anticipated at $1,141, then $1,136, and then $1,105 . . . and resistance anticipated at $1,151, then $1,168, and then $1,200.

Monex spot palladium prices opened the week at $782 . . . traded as high as $782 on Monday and as low as $743 on Friday . . . and the Monex AM settlement price on Friday was $743, down $39 for the week.  Palladium support is now anticipated at $740, then $727, and then $712 . . . and resistance anticipated at $763, then $776, and then $790.


From Alex J. Pollock, in an editorial on the ''Opinion'' page of The Wall Street Journal on March 23rd:

''The Federal Reserve, established in 1913, was a prime example of the dream-world that President Woodrow Wilson imported from the theorists of the German Empire -- the notion of government based on the superior knowledge of independent experts that bypasses the messy and undisciplined world of democratic politics.  The fatal flaw?  The Fed has no superior economic knowledge.  It has only forecasts as unreliable as everybody else's, and theories as debatable.  Hence its many mistakes.

Since the Great Recession ended the Fed has been in overdrive.  It is running an unprecedented, giant monetary experiment.  This experiment includes years of negative real interest rates, the creation of a huge asset-price inflation, and the monetization of real-estate mortgages and long-term bonds.  Should the Fed, or anybody, be allowed to carry out such vast and very risky experiments without effective supervision?  The correct answer is: no.''

. . . and from Martin Conrad, in an editorial on the ''Other Voices'' page of the April 23rd edition of Barron's magazine:

''It has been wisely said that our democracy will end when Congress discovers it can bribe the people with public money.

Political corruption and domineering in the name of social improvement have long gone uncorrected and damage society.

Big mistakes on the great decisions of allocation, solvency, war, and peace, rationalized by ideology and self-interest, lead to the permanent decline of nations and empires, including ours.  These large misallocations have been the deep taproot of our malaise.

As we weigh the achievements of the Great Society legislation through numerous 50th anniversaries, we should realize that these political investments improved neither our economy nor our morals.  They are not generally popular.  They never paid for themselves, as repeatedly promised, but have instead left behind a legacy of inflation and debt.

WOULD WE BE SATISFIED with such results 50 years in the future if we incurred a debt 50 times our present $18 trillion, or $900 trillion (before the impact of future inflation)?  We have been living for too long in a dream.

When our politicians, urged on in the mass media, say better, they mean bigger.  We have for two generations squandered our wealth and influence in manias and wars.  The illusions of control and skill apply as much to politicians and their experts and bureaucrats as to investors and managers.  We would have done much better if we had done much less.''

. . . and from Richard Russell, founder of Dow Theory Letters, in remarks posted on his website on March 23rd:

''In economics, we see nations competing with each other to devalue their respective currencies.  The one currency that cannot be devalued is gold.  Over the centuries, gold has tended to retain its purchasing power.

I know that many gold analysts are of the opinion that gold has not yet carved out its ultimate base.  I'm not going to add to the futile guessing game, but would prefer to watch the actual progress of the metal.  Last week gold avoided its usual knock on the head.  And I'm pleased to see that Friday's bullish action is continuing.

I'd say that gold's support line has moved up to 1190, with 1200 very possibly the new line of support -- we will know in a week or so.  At the same time silver is up .31, and now trading at 17.04.  My best and a fearless future to all my loyal subscribers.

Late Notes -- As the market closed, gold (which is still trading) was up 8.3 to 1190.7, about a dollar off its high for the day.  The anti-gold element always seems to hit gold around stock market closing time.  This has the advantage of gold never closing at the high for the day.  Remember that gold, tangible wealth, is the ever-present enemy of intangible fiat money.  Gold will be a recognized currency when fiat money is a footnote in the world history of currencies.  Speaking of footnotes, collapsing bitcoin, another intangible 'currency,' is rapidly losing its followers.''

. . . and from David Stockman, in a column on the David Stockman's Contra Corner website, on March 26th:

''The Fed and other central banks are now out of dry powder and credibility.  The only thing happening at this point is a currency race to the bottom.  They have no capacity whatsoever to arrest the epochal deflation that is gathering force all around the planet.

So here's the buy the dip history during which the central banks destroyed price discovery, short sellers and economic sanity itself.  They rendered the markets as dumb as a mule, capable of nothing more than reflexively buying the dips.

It will take awhile, but eventually the robo-traders will desist, the day-traders will be broke and the fast money will get short -- once it becomes clear that 'escape velocity' was a myth, the global recession has arrived and the central banks are firing blanks.

Then the bottom will be in, albeit a long way down from here.''

. . . and from Mary Anne and Pamela Aden, editors of The Aden Forecast newsletter, in a weekly update posted on their website on March 26th:

''Today is the 7th day that gold's been rising straight up from the lows.  It closed at a 3 week high today, and as long as gold now stays above $ 1180, the B decline is over.  The weaker dollar, the fall in the stock market, Middle East tensions were just some of the reasons why.

Last week gold reached a low for the 8 week B decline.  If this is truly the low, then by giving up almost 12% in 8 weeks isn't bad.  It went from $1300 in January to $1148 in March.

Most important, gold held above its November low.  This is a good sign.  At this point, if gold were to rise back up to the January highs, it would be turning bullish in the process.  Gold's 23 month moving average, now at $1274, is the final confirm to change the bear to a new bull market.  Of course, surpassing $1300 would be ideal in the turnaround.''

''Silver is moving up better than gold, closing at an almost 6 week high today.  It's now in a solid rise by staying above $16.60.  The jump up in copper is helping silver, and it looks promising above $2.70.  Crude oil looks like a bottom is forming.''

Last update: Mar 27, 2015 11:30:10 AM

This is not a recommendation to buy or sell.