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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 - SEPTEMBER 30, 2016

In the precious metals markets this week . . .  

GOLD:
Monex spot gold prices opened the week at $1,319 . . . traded as high as $1,343 on Monday and as low as $1,313 on Friday. . . and the Monex AM settlement price on Friday was $1,314,down $5 for the week.  Gold support is now anticipated at $1,306, then $1,285, and then $1,260 . . . with resistance anticipated at $1,346, then $1,370, and then $1,392.

SILVER:
Monex spot silver prices opened the week at $19.51 . . . traded as high as $19.69 on Friday and as low as $18.91 on Wednesday. . . and the Monex AM settlement price on Friday was $19.13, down $.38 for the week.  Silver support is now anticipated at $19.16, then $18.80, and then $18.40 . . . and resistance anticipated at $19.63, then $20.06, and then $20.60.

PLATINUM:
Monex spot platinum prices opened the week at $1,039 . . . traded as high as $1,051 on Monday and as low as $1,012 on Wednesday. . . and the Monex AM settlement price on Friday was $1,031, down $8 for the week.  Platinum support is now anticipated at $1,012, then $981, and then $955 . . . and resistance anticipated at $1,048, then $1,072, and then $1,106.

PALLADIUM:
Monex spot palladium prices opened the week at $694 . . . traded as high as $728 on Friday and as low as $692 on Monday. . . and the Monex AM settlement price on Friday was $722, up $28 for the week.  Palladium support is now anticipated at $718, then $697, and then $680 . . . and resistance anticipated at $728, then $747, and then $778.

QUOTES OF THE WEEK:

From Peter Schiffe, as posted in GoldSeek.com on September 29th:

''While a record audience watched the first presidential debate between Hillary Clinton and Donald Trump, the sad truth is that the candidates differ very little on the issues that matter most.  As president, both Clinton and Trump are likely to drive the country deeper into debt, expand government power, and further curtail individual liberty and economic freedom.  Though we can vote against the candidate we feel will accelerate this trend, our votes may do nothing to change the direction we are headed.

But there is one vote that may actually make a difference.  The real source of government power is its monopoly over money.  Working hand and glove with the Federal Reserve, the Federal government has been able to finance permanent deficits by creating purchasing power out of thin air.  Voters think government spending in excess of taxation means that the public gets something for nothing  But the more visible ''inflation tax'' is not only more expensive than the overt official taxes, but does even more damage to our economy.

While government taxation and regulation have worked to limit productivity, private sector investment and innovation have worked to enhance it.  But the recent rise and acceptance of activist central banking has tilted the balance in favor of government.  Interest rates held at close to zero have short-circuited the economy's natural vitality.  As a result, living standards have spiraled downward for rank and file Americans.  Despite government statistics that seek to paint a brighter picture, this dissatisfaction has been clearly reflected in the tone and tenor of the current election.  But if we really want to take our country back, we need to start by taking our monetary system back.

The United States was built on a foundation of sound money, and is now crumbling without one.  A constitutional gold standard served as well for nearly 200 years, until Richard Nixon decided to do away with it ''temporarily'' in 1971.  It's been 45 years and we are still waiting for the return.  As the Federal Reserve prepares to stamp out any remaining integrity that our currency may still possess, I suggest that we can't afford to wait any longer for our government to honor Nixon's promise.  We must do it ourselves.''

...and from Jim Wyckoff, contributing to Kitco News on September 29th:

''Gold Gets Modest Boost On Deutsche Bank Worries, Rallying Crude Oil''

''Gold prices ended the U.S. day session firmer Thursday and were lifted by concerns about a big German Bank staying liquid and by higher crude oil prices.  December Comex gold was last up $3.00 an ounce at $1,326.80.  December Comex silver was last up $0.079 at $19.20 an ounce.

News reports surfaced just before midday that several hedge funds had downgraded the already troubled German Deutsche Bank.  That news sent the German bank's stock down farther and also put significant downside pressure on the U.S. stock market.  This, in turn, helped to lift safe-haven gold prices modestly higher.  Some short covering in the futures market and bargain hunting in the cash market, following this week's selling pressure, also supported gold and silver prices Thursday.

Crude oil is the leader of the raw commodity sector.  When oil rallies, that usually prompts buying interest in other raw commodity markets, including the precious metals.''

...and from Lawrie Williams in a posting entitled, ''The parallels between Brexit and US Presidential election.  Buy gold!'' on sharpspixley.com September 28th:

Both candidates are hugely unpopular with a large sector of the US public and it may just come down to which candidate's campaign can get the votes out.  Parallels with Brexit here.  The Exit campaign had more committed voters than the Remain campaign and other polls have suggested that Trump supporters may be more likely to turn out than Clinton ones.

If Trump were to win, the American political and economic elite will be shell-shocked - not to mention most of the African American and female population of the U.S.A.  Markets will probably be thrown into turmoil in the U.S., and around the world too, as Trump is seen as both mercurial and unpredictable.  He's basically a hard-nosed business man perhaps unsuited to the diplomatic niceties that global leaders expect. Getting his own way regardless of opposition would be the norm.  That would be the biggest Black Swan event of the year and would generate huge global uncertainty.  Gold thrives on uncertainty.  Need I say more.

Prior to UK's Brexit vote we advised readers to buy gold against the possibility - small though it may have seemed at the time - of the UK voting to leave the EU - not only because we felt the gold price would rise in the aftermath of such a vote, but also that the pound sterling would fall.  Gold would be a wealth protector in such a case.  That proved to be wise advice!

Perhaps now we should suggest that Americans do likewise with the same scenario in sight should Trump come out on top. Reluctant uncertainty could drive the dollar down and gold up - which amounts to the same think in some economists' minds. Roll on November 8th and free us all from uncertainties.''

and from Casey Murphy from a posting on Investopedia.com on September 26th:

''When it comes to commodity investing, the rarest and most precious of metals is platinum.  Aside from its industrial and cosmetic purposes, purchasing platinum is also popular with investors looking to escape rising volatility across the globe.  Fundamentally, when it comes to holding wealth outside of traditional means there are few assets that are a better store of wealth than platinum.''

Last update: Sep 30, 2016 11:58:50 AM

This is not a recommendation to buy or sell.