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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...

The Monex AM closing price on Friday was $1,341, up $13 for the week. Monex spot gold prices opened the week at $1,328. . . traded as high as $1,355 on Friday and as low as $1,321 on Tuesday. Gold support is now anticipated at $1,330 then $1,308, and then $1,298. . . with resistance anticipated at $1,355, then $1,370, and then $1,402.


The Monex AM closing price on Friday was $14.81, up $0.08 for the week. Monex spot silver prices opened the week at $14.73. . . traded as high as $15.10 on Friday and as low as $14.63 on Monday. Silver support is now anticipated at $14.70, then $14.44, and then $14.09. . . and resistance anticipated at $15.10, then $15.40, and then $15.67.


The Monex AM closing price on Friday was $805, up $5 for the week. Monex spot platinum prices opened the week at $800. . . traded as high as $817 on Tuesday and Wednesday and as low as $800 on Monday. Platinum support is now anticipated at $800, then $788, and then $764. . . and resistance anticipated at $820, then $838, and then $855.


The Monex AM closing price on Friday was $1,461, up $108 for the week. Monex spot palladium prices opened the week at $1,353. . . traded as high as $1,464 on Friday and as low as $1,353 on Monday. Palladium support is now anticipated at $1,420, then $1,400, and then $1,380. . . and resistance anticipated at $1,470, then $1,499, and then $1,520.

The 2019 ''Metals Market Outlook'' annual report is now available! These reports are written exclusively for Monex by the widely-followed and highly respected New York-based precious metals research firm, CPM Group. These reports provide important news, charts, and insight into the gold, silver, platinum and palladium markets. Give us a call today to get your free report! 800-444-8317.
From Neil Hall/Reuters in 6/13 Gold Gains As Fed Rate Cut Expectations Provide Support

''Gold prices climbed to a week's high on Thursday, supported by expectations for an interest rate cut by the U.S. Federal Reserve following soft inflation data, although an uptick in equities capped gains.

Spot gold rose 0.5% to $1,340.13 per ounce, after touching its highest since June 7 at $1,344.60 earlier in the session.

'The initial move on higher prices was due to escalating trade tensions ... Thereafter, concerns around recession or a slowing U.S. economy has helped push up rising expectations of a Fed interest rate cut in July,' said Suki Cooper, precious metals analyst at Standard Chartered Bank.

Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.

Fed policymakers are scheduled to meet on June 18-19, with financial markets pricing in at least two rate cuts by year-end, after tepid consumer price data on Wednesday and employment data were seen as further indications the U.S. economy may be losing steam.

'It (gold) found strong support around $1,320 earlier this week and has since burst higher with the previous peak around $1,350 in its view. A break of this could propel gold higher, although it will have to be matched with momentum,' Craig Erlam, senior market analyst with OANDA, said in a note.

''Risk appetite in the markets is likely to work against gold, but the dollar looking vulnerable is clearly supportive,'' he wrote.

Silver climbed 1.1% to $14.90 per ounce while platinum dipped 0.3% to $806.07.

Palladium jumped 2.6% to $1,442.51 per ounce after hitting a more than six-week high of $1,447.26 earlier in the session.

'Even though auto sales globally are slowing, we are seeing palladium demand rise amid tighter emission regulations around the world,' said Standard Chartered's Cooper.''

...And From James Mackintosh in 6/12 Wall Street Journal Uncertainty Is Needed Check on Markets

''President Trump's trade policy is widely criticized by economists but has a silver lining: It is damping down animal spirits in markets that could otherwise lead to the sort of runaway boom that ends horribly.

It might seem odd to regard what is clearly seen by investors as very bad news - the uncertainty of new tariffs - as a sort of good news. But while tariffs are obviously bad news for the economy and corporate profit, by keeping the markets from turning frothy they may do a good job of preventing an unsustainable boom.

As we saw last week with Mexico, trashing important trading relationships pushes investors to run for the hills. The havens of gold, government bonds and the Swiss franc all rose, while stocks touched a three-month low before rebounding. All the havens sold off again on Monday after Mr. Trump suspended the tariffs, while stocks jumped.

But by holding back investment, the trade uncertainty might help to prevent or delay the excesses that so often market the late stage of the economic cycle.

After a decade of growth, the U.S. is running at our close to full capacity on most measures.

Growth ought to be slow, because there isn't a lot (perhaps any) slack to be picked up.

History suggests this is one of the times when animal spirits tend to be overly positive.

Investors and companies have forgotten the last recession and are eager to recycle their ample profits into new opportunities.

But keep a lid on the optimism, and the boom-bust cycle can be more drawn-out and less damaging. To some extent, this is the history of the past decade, as memories of the greatest financial crisis in generations made banks, investors and chief executives cautious about committing capital. This helped to reduce the markets normal boom-bust behavior, just as it did after the Great Depression and World War II.

Enter Mr. Trump. His election in 2016 and subsequent tax cuts led to the highest optimism readings among small businesses in history, while the Conference Board's CEO confidence index reached a post-2008-crisis high.

The stock market soared to records, and business investment picked up, although not sharply.

There was a risk of an unsustainable boom, with the stock market reaching its highest valuation in 16 years on price-to-forward earnings at the start of last year.

The Federal Reserve used a series of rate increases to try to keep things under control, while worrying in public about the rapid growth of the riskiest forms of corporate debt

Confidence has crumbled, the stock market has pulled back - with valuations down to where they stood at the end of 2014 - and companies have reined in expansion plans. It turns out that threats to global trade, and particularly the large and interconnected car industry, are an effective way to stifle a boom.''

...And From Myra Saefong 6/10 Barron's Gold's Rally Far From Over

''Gold has moved higher for the year, after stalling just below the $1,200-an-ounce mark for weeks. All the factors for the metal to rally to record levels might finally be falling into place.

'Gold does well in a period of dollar weakness, inflation and economic uncertainty,' says Peter Schiff, chief global strategist for Euro Pacific Capital, a division of Alliance Global Partners. 'We are about to get all three.'

Gold prices were held back by expectations that the Federal Reserve's monetary tightening cycle would continue for years, argues Schiff. 'Everyone now recognizes that the Fed is done tightening and that the bias is in the other direction, but few understand just how far and how fast [the Fed] will have to loosen monetary policy in the coming months,' he adds.

In Schiff's view, the economy is approaching a 'severe recession' that will prompt the central bank to launch another round of quantitative easing to drive down interest rates. He predicts that the next round of QE will be much larger than prior ones. 'Given that, gold should be rocketing upward,' he says.

Gold futures settled at $1,346.10 an ounce on Friday, their highest finish since Feb 20, when they hit a 10-month high.

For gold's latest rise to stick, Brien Lundin, the editor of Gold Newsletter, says prices will have to top $1,375. Getting past that hurdle will be difficult, he maintains, but might clear the way to $1,500 by year year, a level not seen since April 2011''

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This is not a recommendation to buy or sell.

Last update: Jun 14, 2019 11:41:05 AM

This is not a recommendation to buy or sell.