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 - OCTOBER 2, 2015
In the precious metals markets this week . . .
Monex spot gold prices opened the week at $1,131. . . traded as high as $1,142 on Friday and as low as $1,111 on Friday . . . and the Monex AM settlement price on Friday was $1,138, up $7 for the week. Gold support is now anticipated at $1,133, then $1,122 and then $1,102. . . with resistance anticipated at $1,146 then $1,169 and then $1,202.
Monex spot silver prices opened the week at $14.66 . . . traded as high as $15.30 on Friday and as low as $14.46 on Thursday . . . and the Monex AM settlement price on Friday was $15.26, up $00.60 for the week. Silver support is now anticipated at $15.11, then $14.74 and then $14.34. . . and resistance anticipated at $15.43, then $15.90 and then $16.43.
Monex spot platinum prices opened the week at $926. . . traded as high as $915 on Friday and as low as $900 on Thursday. . . and the Monex AM settlement price on Friday was $905, down $21 for the week. Platinum support is now anticipated at $895, then $855 and then $831 . . . and resistance anticipated at $928, then $955 and then $984.
Monex spot palladium prices opened the week at $650. . . traded as high as $702 on Friday and as low as $648 on Monday . . . and the Monex AM settlement price on Friday was $698, up $48 for the week. Palladium support is now anticipated at $692, then $674 and then $638. . . and resistance anticipated at $716, then $735 and then $762.
Quotes of the Week:
Fed's Serious Inflation Risks, Adam Hamilton, 321gold, October 2, 2015
"As simple as money seems, it is very complex in both theory and practice. We all understand the idea of working to earn money to buy goods and services. But the seminal treatise on money, the legendary economist Ludwig von Mises' "The Theory of Money and Credit" published in 1912, weighed in at 445 pages! Money is a topic that endlessly preoccupies elite central bankers with doctorates in economics.
Money is ultimately a commodity, its value determined by its own fundamental supply and demand. If demand exceeds supply for any given currency, its price will rise relative to other currencies. As this money grows more valuable, it takes relatively less to buy goods and services. The persistent increase in the purchasing power of money, resulting in a persistent decrease in general price levels, is deflation.
Today systemic deflation is assumed and feared by traders around the world. They look at the various price indexes published by governments, which show either slowing increases in general price levels or slight decreases. They worry incessantly that the former disinflation will decay into the latter deflation. So the idea that there are big risks of serious inflation breaking out is hyper-contrarian heresy, widely ridiculed.
Yet think about the commodity of money. Deflation requires demand growth to exceed supply growth, which is clearly not happening. In this era of extreme central-bank easing globally, money supplies all over the world are literally skyrocketing! With supply growth radically outpacing demand growth, the only possible ultimate outcome has to be big inflation. There is always a reckoning for huge monetary expansion." Adam Hamilton: 321 Gold
Q3 SGE Gold Deliveries Set to Exceed Phenomenal 800 T, Lawrie Williams, October 2, 2015
The latest delivery figures from the Shanghai Gold Exchange (SGE) remain remarkably high with 65.7 tonnes withdrawn in week 38 (ended Sept 25th) making a massive total so far this year of 1,958.7 tonnes. Deliveries in Q3 alone are only a shade under 800 tonnes to date - an absolutely phenomenal quarterly figure and this 800 tonne Q3 total will certainly be breached once the current (short) week's figures are announced. If deliveries are maintained at this kind of rate our projected 2,650 tonne guesstimate for total SGE withdrawals this year could well be exceeded.
Georgette Boele, October 2, 2015
Will the emission crisis push platinum prices below the 2008 low?
We don't think so. The global economic outlook in the major economies remains constructive and we are not that negative on china as some investors and analysts are. It is likely that on the short term the emission scandal will weigh on the platinum demand outlook though. A this moment it is unclear how this scandal will evolve further.
We also remain rather positive on other sources of demand. We expect a pick-up in jewelry demand from China. Jewelery demand is as important as autocatlyst demand for the platinum outlook. In addition, we expect other industrial demand to remain positive as well,. So total demand excluding investor demand will likely hold up relatively well. However, investor demand could remain negative in the near term. Even though positions in the futures market have been reduced significantly, positions in the future market have been reduced significantly positions in ETFs are still substantial. Investors will likely continue to liquidate positions in the wake of a higher US dollar and the emission scandal. If we take all the above into consideration we expect hear term weakness in platinum prices but not a re-test of the low seen during the global financial crisis. At the most, we expect platinum prices to fall to USD 850 per ounce.
Last update: Oct 02, 2015 02:20:26 PM
This is not a recommendation to buy or sell.