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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 - June 23, 2017
In the precious metals markets this week...
GOLD

Monex spot gold prices opened the week at $1,247 . . . traded as high as $1,258 on Friday and as low as $1,239 on Wednesday. . . and the Monex AM settlement price on Friday was $1,254, up $7 for the week. Gold support is now anticipated at $1,240 then $1,217, and then $1,180. . . with resistance anticipated at $1,258, then $1,270, and then $1,297.

SILVER

Monex spot silver prices opened the week at $16.57 . . . traded as high as $16.73 on Friday and as low as $16.31 on Wednesday. . . and the Monex AM settlement price on Friday was $16.63, up $0.06 for the week. Silver support is now anticipated at $16.42, then $16.20, and then $15.87. . . and resistance anticipated at $16.70, then $16.91, and then $17.04.

PLATINUM

Monex spot platinum prices opened the week at $918. . . traded as high as $934 on Thursday and as low as $916 on Wednesday. . . and the Monex AM settlement price on Friday was $929, up $11 for the week. Platinum support is now anticipated at $918, then $898, and then $887 . . . and resistance anticipated at $934, then $955, and then $970.

PALLADIUM

Monex spot palladium prices opened the week at $865. . . traded as high as $887 on Thursday and as low as $853 on Monday, Tuesday and Friday. . . and the Monex AM settlement price on Friday was $854, down $11 for the week. Palladium support is now anticipated at $845, then $827, and then $803 . . . and resistance anticipated at $888, then $900, and then $911.

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 Myra P. Saefong and Rachel Koning Beals in the 6/21 marketwatch.com Gold Rebounds After 2-Session Drop To Lowest Since Mid May

"Gold prices ended higher Wednesday, rebounding from what was the lowest settlement in five weeks, as the dollar eased, boosting the appeal of haven investments.

"If this stock market bubble's going to find its pin in higher interest rates, gold prices are likely to struggle at first," said Adrian Ash, head of

research at Bullion Vault. "But years of poor equity and bond returns tend to see years of rising gold prices," he said. The recent pullback in gold "only makes investment insurance cheaper for anyone wanting to spread their risk before it really starts to matter."

Economic and interest-rate policy uncertainty will continue to hold sway over metals and currency trading. Last week, Fed Chairwoman Janet Yellen laid out a plan to shrink the central bank's massive $4.5 trillion balance sheet, as the Fed also raised interest rates."

...and from the 6/21 economictimes.indiatimes.com Gold Edges Up from Five-week Lows as Equities Fall

"Gold inched up on Wednesday after hitting its lowest in five weeks in the previous session, buoyed as equities fell and the US dollar eased from one-month highs following a tumble in crude oil prices.

US gold futures for August delivery climbed 0.3 percent to $1,247.50 per ounce.

Dallas Fed President Robert Kaplan on Tuesday expressed doubt that short-term interest rates are very accommodative and said he wants to wait for more data to understand whether recent weak inflation readings are transitory as he suspects."

...and from 6/21 seekingalpha.com Is Gold Severely Undervalued Compared To Central Bank Balance Sheets?

"A large percentage of commentators are still fixated on the correlation between Central Bank Balance Sheet and Gold. A correlation existed prior to 2012 but appears to be severed.

While many reasons were cited at the time for the bullish outlook on Gold, one particular one was cited most often.

Central bank balance sheets were increasing exponentially as they bought various assets in the market. The ideas was that this represented "money printing" and Gold price was intricately tied to this. The argument below made by Eric Sprott, on the of most noted Gold Bulls, sums it up perfectly.

But Sprott believes gold isn't a commodity, and shouldn't be analyzed as one, because bullion doesn't get consumed like wheat, oil, or corn. Most gold is hoarded in a massive stockpile to which the small amount of annual mine supply is added, making it an ideal type of money.

"Total gold supply can only grow marginally, while fiat money supply can grow exponentially through printing programs. This is why gold's monetary value is so important - it's the only 'currency' in play that is immune to government devaluation," according to Sprott.

Sprott believes the best predictor of gold's moves is the growth in major central bank balance sheets as they create more money. With the amount of dollars or yen or euros increasing, the price of gold in terms of them should rise. "It's really a very simple and intuitive relationship, as it should be," Sprott says.

According to Sprott's analysis, every $1-trillion in new central bank money on average drives gold up by about $210 an ounce."

Last update: Jun 23, 2017 11:53:33 AM

This is not a recommendation to buy or sell.