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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 - November 8, 2019
In the precious metals markets this week...
GOLD

The Monex AM closing price on Friday was $1,462, down $49 for the week. Monex spot gold prices opened the week at $1,511. . . traded as high as $1,512 on Monday and as low as $1,459 on Friday. Gold support is now anticipated at $1,455 then $1,438, and then $1,420. . . with resistance anticipated at $1,472, then $1,488, and then $1,502.

SILVER

The Monex AM closing price on Friday was $16.87, down $1.29 for the week. Monex spot silver prices opened the week at $18.16. . . traded as high as $18.17 on Monday and as low as $16.81 on Friday. Silver support is now anticipated at $16.80, then $16.46, and then $16.21. . . and resistance anticipated at $17.00, then $17.23, and then $17.55.

PLATINUM

The Monex AM closing price on Friday was $893, down $64 for the week. Monex spot platinum prices opened the week at $957. . . traded as high as $957 on Monday and as low as $890 on Friday. Platinum support is now anticipated at $888, then $862, and then $848. . . and resistance anticipated at $900, then $908, and then $933.

PALLADIUM

The Monex AM closing price on Friday was $1,733, down $69 for the week. Monex spot palladium prices opened the week at $1,802. . . traded as high as $1,802 on Monday and Thursday and as low as $1,730 on Friday. Palladium support is now anticipated at $1,725, then $1,704, and then $1,688. . . and resistance anticipated at $1,770, then $1,791, and then $1,808.

Watch Managing Partner of the CPM Group, Jeffrey Christian, in our latest "A Year for Accumulation" video. You'll gain insight on recent moves in the metals market, the economy, and current events which could have an impact on how investors accumulate their metals in 2019 https://www.monex.com/year-for-accumulation/
QUOTES OF THE WEEK...
From CPM Group November Precious Metals Advisory De-escalation Not Resolution

''Financial markets have been trending sideways in recent weeks, as many investors were concerned that the U.S. and other countries might be tipping into recession, with the ongoing U.S. trade war against China and constant threats of sanctions against others from Europe to Mexico compounding already weakening economic activity. In this environment gold and silver, and to a lesser extent platinum, also traded sideways in a range-bound fashion.

Over the past week financial markets backed away from this. Some investors, rightly or wrongly, came to think that there has been a de-escalation of trade tensions between the United States and China, compared to the heightened hostility observed between the two countries over trade during the summer. This couples with the realization that economic conditions in the United States were not as dire as some market participants believed and assurances from the Fed that it will not raise rates until inflation becomes problematic gave investors a greater appetite to move back into stocks, pushing equity markets to new record high levels and weighing on metals as portfolio diversifiers.

Similar to now, optimism related to a trade agreement between the two countries was observed earlier this year in April as well, only for talks between the two counties to break down and deteriorate significantly in early May, the hostility extending throughout the middle of the year. Even though negotiations have been rather unimpressive, market sentiments have done a 360 degree turn and are back to where we were earlier this year.''

...And Adrew Hecht in 11/8 www.seekingalpha.com Platinum Technicals Continue To Build A Base Slowly

''In mid-June, before the gold market broke out to the upside, the price of platinum looked sick. During the week of June 17, the price of the rare precious metal traded to a low at $790.20 per ounce.

All of the precious metals found bottoms in late 2015 and early 2016. Gold fell to a low at $1046.20, and never returned to the level. Silver found its nadir at $13.635. While it came close to a test of that level, it has never returned. Palladium fell to its low at $451.50 in January 2016. Not only has it not attempted to challenge that price, at the most recent high at $1799.20 is almost quadruple the price at the 2016 bottom. Even rhodium, which does not trade on the futures exchange, has been a star performer. After reaching a low at $575 per ounce in 2016, the price of the metal that is a byproduct of platinum production was at over $5000 per ounce this week.

When it comes to platinum, the low in early 2016 was $812.20. In August 2018, the price fell to a lower low at $755.70. In 2019, the bottom was at $780.90. Platinum has not followed the example of all of the other precious metals. A significant recovery is long overdue in the platinum futures market, which was trading at around the $915 level on November 7. Patience may be a virtue, but in platinum is has been more like torture. Watching the performance of the other metals has made platinum the red-headed stepchild of the precious metals sector.

Every dog has its day. For those like myself who believe in the value proposition for platinum, the physical bars or the Aberdeen Standard Physical Platinum Shares ETF (PPLT) product are unpolished diamonds in the rough.

In early 2016, the price of nearby NYMEX platinum futures fell to a low at $812.20 per ounce.

The quarterly chart shows that the price of platinum fell to a lower low at $755.70 in 2018. At the $915.00 level November 7, platinum was 12.7% higher than the early 2016 low at $812.20. Platinum's all-time peak was at $2308.80 in 2008.

The quarterly chart of NYMEX palladium futures shows a different story when it comes to price performance. After reaching a bottom at $451.50 in January 2016, palladium rose to its most recent high at $1799.20 on October 30, 2019. The almost four-fold increase took out the previous all-time high from 2001 at $1090 per ounce.

The gain in platinum since early 2016 has paled in comparison with the price action in the other two platinum group metals.

The most direct route for investment in platinum is via the bars and coins offered by precious metals dealers and financial institutions around the world.''

...And From Herbert Lash in 11/7 www.reuters.com Global Stocks, Dollar Rally On Renewed U.S.-China Deal Hopes

''Oil prices rose and stocks rallied worldwide on Thursday after China said it had agreed with the United States to cancel tariffs in phases, a key consideration in reaching a deal to end a trade war that has crimped economic growth and roiled markets.

Wall Street's three main stock indexes hit record highs and a gauge of worldwide equity performance surged to a 21-month peak, with a pan-European index at its highest since July 2015 after regional shares rose for a fifth straight session.

The dollar gained after comments from a Chinese commerce ministry spokesman about the terms of a potential trade deal prompted investors to dump perceived safe havens such as the Japanese yen, the Swiss franc, bonds and gold.

No timetable was indicated, but a ''phase one'' deal is widely expected to include a U.S. pledge to scrap tariffs scheduled for Dec. 15 on about $156 billion worth of Chinese imports, including cellphones, laptop computers and toys.

The news from China was positive, but in a slowing economy with operating earnings trending lower year over year, ''the fundamental justification for this market increase is pretty weak,'' said David Kelly, chief global strategist at JPMorgan Funds in New York.''



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This is not a recommendation to buy or sell.

Last update: Nov 08, 2019 10:58:54 AM

This is not a recommendation to buy or sell.