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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 $1,201 . . . traded as high as $1,208 on Thursday and as low as $1,188 on Tuesday . . . and the Monex AM settlement price on Friday was $1,204, up $3 for the week.  Gold support is now anticipated at $1,193, then $1,172, and then $1,142 . . . with resistance anticipated at $1,208, then $1,225, and then $1,242.

Monex spot silver prices opened the week at $16.32 . . . traded as high as $16.48 on Thursday and as low as $16.05 on Tuesday . . . and the Monex AM settlement price on Friday was $16.24, down $.08 for the week.  Silver support is now anticipated at $16.08, then $15.72, and then $15.37 . . . and resistance anticipated at $16.33, then $16.57, and then $17.14.

Monex spot platinum prices opened the week at $1,154 . . . traded as high as $1,173 on Thursday and as low as $1,152 on Monday . . . and the Monex AM settlement price on Friday was $1,169, up $15 for the week.  Platinum support is now anticipated at $1,164, then $1,149, and then $1,125 . . . and resistance anticipated at $1,185, then $1,212, and then $1,249.

Monex spot palladium prices opened the week at $780 . . . traded as high as $786 on Friday and as low as $760 on Tuesday . . . and the Monex AM settlement price on Friday was $785, up $5 for the week.  Palladium support is now anticipated at $778, then $765, and then $746 . . . and resistance anticipated at $791, then $809, and then $831.


From Jacqueline Doherty, in the ''Streetwise'' column in the April 13th edition of Barron's magazine:

''The Federal Reserve appears on course to raise the federal-funds rate, the interbank overnight lending rate, for the first time since 2006; it chopped that rate in 2007 and 2008.  In 1983, 1994, and 2004, when the Fed tightened monetary policy, the stock market was flat to down 10% in the next 12 months, notes James Paulsen, chief investment strategist at Wells Capital Management.  Given today's zero-rate policy, the market reaction to a rate hike could be more dramatic.

Stocks could also come under pressure as the impact of the strengthening dollar is more widely felt.  The expected tightening in monetary policy has already pushed the dollar up 14% this year against the euro, reducing the value of U.S. corporate earnings generated overseas when translated into greenbacks.  Non-U.S. revenue accounts for about a third of S&P 500 sales, says Michael Penn, macro strategist at Cohen & Steers.  Additionally, the stronger dollar is bound to reduce exports, which represent 13.5% of U.S. gross domestic product.  'The stronger dollar, combined with imminent Fed tightening, creates a negative backdrop for U.S. stocks, relative to Europe and Japan,' Penn states.''

. . . and from David Stockman, in a posting on his David Stockman's Contra Corner website on April 14th:

'The fairy dust peddlers who moonlight as Wall Street economists were out in force this morning after March retail sales came in with a positive m/m change for the first time since November.''

''Today's bubble vision jabbering about March retail sales, of course, is just more of the phony baloney 'gas tax cut' meme.  The 50% cut in world oil prices did not put more income in consumers' pockets; it just allowed them to spend a tad more on home improvement and restaurants and less on gasoline.  But relative price changes and spending reallocations between categories come and go; and besides, this was the 'advance' retail report that is going to get revised several more times, anyway.

What might more profitably be asked is this: Has there been any improvement in the tepid rate of retail sales gain since the pre-crisis peak?  The answer is no there hasn't been.

In fact, the March monthly number of $441.4 billion reflected only a 2.1% annual rate of gain since the November 2007 peak.  During that same seven year period the CPI was up at a 1.5% rate -- meaning that inflation adjusted retail sales have grown at only 0.6% per annum during the last 7 years.''

. . . and from Richard Russell, founder of Dow Theory Letters, in remarks posted on his website on April 14th:

''Reading the comments on the internet I note that higher emotions and hysteria are in the air -- just look up 'dollar crash' on Google.  Some commentators are even predicting a collapse of the US and a coming apart of the entire currency system.  Others are predicting a crash of the US financial system with the Dow falling under 400 (Elliot Wave, Theorist).

It does seem that something momentous lies ahead.  Many are warning of a total collapse in the US.  I often have strong feelings about subjects and I want to say that I have a strong intuition about the survival of the US.

No matter how brutal a bear market may enter the picture, I have a very strong feeling that the US will survive.  The US will rise stronger and more brilliant than before, but prior to that we may have to navigate through hard times.''

''What I want to emphasize is the powerful intuition that tells me that America will survive the next bear market and come out of it stronger and more capable of leading the world.  That was the case after World War II.''

. . . and from Ambrose Evans-Pritchard, in a posting on The Telegraph website on April 17th:

''Greek finance minister Yanis Varoufakis has acknowledged that his country is desperately short of funds, accusing Europe's creditor powers of trying to force his country to its knees by 'liquidity asphyxiation.'

'Liquidity is drying up in Greece.  It is true,' he told a gathering at the Brookings Institution in Washington.

Mr Varoufakis said a conspiracy of forces was trying to 'snuff out' Greece's Syriza government but warned that this could have devastating effects.

'Toying with Grexit, or amputating Greece, is profoundly anti-European.  Anybody who says they know what will happen if Greece is pushed out of the euro is deluded,' he said.

The warnings were echoed by Eric Rosengren, head of the Boston Federal Reserve, who said Europe risks setting off uncontrollable contagion if it mishandles the Greek crisis, even though Greece may look too small to matter.

'I would say to some European analysts who assume that a Greek exit would not be a problem, people thought that Lehman wouldn't be a problem.  If you measured the size of Lehman relative to the size of the US economy it was quite small,' he told a group at Chatham House.

'I wouldn't be overly confident that just because the Greek economy is small relative to the size of the European economy that something like that wouldn't be a major dislocation.  I think everybody should be a little bit concerned,' he said.''

. . . and from Anora Mahmudova and Barbara Kollmeyer, in a posting on the MarketWatch website on April 17th:

''U.S. stocks tanked on Friday as a confluence of intensifying Greek default fears and a new stock-market regulation from China put investors on edge.

Recent gains in European equity markets and high valuations of U.S. stock indexes also made them vulnerable to a pullback, according to some analysts.

Donald Ellenberger, senior portfolio manager at Federated Investors, said concerns over Greece and its ability to pay its debt are behind the selloff in risky assets such as equities.

'Investors have piled into German bunds and credit spreads widened.  But it was news from China's regulators that triggered selling, as a lot of investors were sitting on gains after a run-up in equity markets,' Ellenberger said.''

''Also affecting global markets was an outage of Bloomberg terminals.  Traders' access to the terminals went down around the same time Asian markets closed at about 3:15 a.m. Eastern Time.''

''Correction ahead?  A technical analyst told CNBC on Friday that he expects major global benchmarks to begin correcting over the next month.  'I think the correction has started on the DAX, and the S&P 500 we are probably on the top today,' Yacine Kanoun, managing director at PivotHunters, a U.K.-based portfolio management company, said Friday.''

Last update: Apr 17, 2015 11:21:03 AM

This is not a recommendation to buy or sell.