HTML5 Incompatible Browser

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 - April 13, 2018
In the precious metals markets this week...
GOLD

Monex spot gold prices opened the week at $1,333 . . . traded as high as $1,366 on Wednesday and as low as $1,332 on Monday. . . and the Monex AM settlement price on Friday was $1,346, up $13 for the week. Gold support is now anticipated at $1,335 then $1,321, and then $1,308. . . with resistance anticipated at $1,366, then $1,388, and then $1,420.

SILVER

Monex spot silver prices opened the week at $16.32. . . traded as high as $16.84 on Wednesday and as low as $16.32 on Monday. . . and the Monex AM settlement price on Friday $16.32, up $0.31 for the week. Silver support is now anticipated at $16.15, then $15.85, and then $15.68. . . and resistance anticipated at $16.85, then $17.10, and then $17.27.

PLATINUM

Monex spot platinum prices opened the week at $921 . . . traded as high as $942 on Wednesday and as low as $921 on Monday. . . and the Monex AM settlement price on Friday was $928, up $7 for the week. Platinum support is now anticipated at $920, then $901, and then $889 . . . and resistance anticipated at $944, then $962, and then $988.

PALLADIUM

Monex spot palladium prices opened the week at $930. . . traded as high as $985 on Friday and as low as $918 on Monday. . . and the Monex AM settlement price on Friday was $978, up $48 for the week. Palladium support is now anticipated at $940, then $898, and then $881. . . and resistance anticipated at $990, then $1,020, and then $1,049.

Monex VP Mike Maroney and CPM Group Managing Partner Jeffrey Christian offer analysis and commentary on recent activity in the economy, geopolitics and the precious metals markets in our "Prepare & Diversify with Gold & Silver" video series. Watch now to learn what gold and silver could do for you https://www.monex.com/prepare-and-diversify/
QUOTES OF THE WEEK...
From 4/12 Wall Street Breakfast: High Stakes For Earnings Season

"The volatile stock market will see a major test in the coming weeks as traders size up first quarter results. Tax cuts should help Corporate America post it's biggest quarterly profit growth in seven years, with S&P 500 profits expected to rise 18.4%, but any disappointments could further upset investor sentiments."

...And From Keris Lahiff in 4/12 www.cnbc.com Gold Is Taking Back Its Crown From Bitcoin As Best Defensive Play, Strategist Says

"Gold soared to two-year highs this week as uncertainty rattled the market. The bull run isn't over yet, says one strategist.

'I am a buyer. I really do like it,' Boris Schlossberg, managing director of FX strategy at BK Asset Management, told CNBC's 'Trading Nation' on Wednesday. It's 'retaking its mantle as the key defensive asset against bitcoin, which has certainly suffered a lot over the last couple of months.'

As of Thursday, gold, the traditional safe-haven asset, had risen just over 3 percent this year. It was down 0.72 percent on Thursday.

Gold's rise is not a new development, says Chris Verrone, head of technical analysis at Strategas Research Partners. In fact, it's rally has been years in the making. 'This improvement in gold is now about 4 or 5 years old,' Verrone told CNBC on Wednesday. 'We have this big base that has been taking shape really since late 2012.'

Gold prices found a bottom in early December 2015 after hitting a multiyear high in late 2012. Since that low, gold has surged 28 percent to trade at around $1,347 an ounce.

If gold can break above the next key level of resistance, it would be a big positive for gold prices, says Verrone. 'This $1,375 level is key. That's been resistance over the last couple of years,' he said.' We ultimately think it does break out above that."

...And from Sharon Nunn in 4/11 Wall Street Journal Producer-Price Increase Suggests Rising Inflation

"A gauge of U.S. business prices rose more than expected in March, the latest sign inflation pressures may be building.

The producer-price index, a measure of the prices businesses receive for their goods and services, increased a seasonally adjusted 0.3% in March from a month earlier, the Labor Department said Tuesday. Economists had expected a 0.1% rise.

The increase resulted form a rise in food prices and continued robust price growth in the services sector. Food prices grew 2.2% in March, the largest one-month increase in about four years. Meanwhile, prices in the services sector rose strongly for the third straight month, with price growth coming in at 2.9% in arch from the prior year, the largest annual change in almost eight years.

'We're starting to see the pressures coming from an economy that's running a bit hot,' said Stephen Stanley, chief economist at Amherst Pierpont Securities. 'It makes sense that if a tight labor market is leading to price pressures, you'd see that mostly in the services sector because labor input in the biggest cost [there].'

'With the labor market continuing to tighten, and labor costs being the primary driver of inflation in the dominant service sector, we continue to expect core inflation to move higher,' Joshua Shapiro, chief U.S. economist at MFR Inc. said in a note to clients Mondays."

...And From Chelsey Dulaney in 4/10 Wall Street Journal Trade Worries Intensify Dollar's Woes

"Escalating trade tensions between the U.S. and China are emerging as the latest threat to the U.S. dollar, which has been losing value for more than a year.

U.S. exports could come under pressure if China or other countries ramp up tariffs on U.S. products, which would effectively reduce demand for dollars and potentially widen the trade deficit that the Trump administration is attempting to close. Shares of big U.S. exporters, such as Boeing Co. and Caterpillar Inc., have tumbled in recent weeks as investors fear trade [policies will hurt overseas sales].

Meanwhile, the rise in trade tensions could spook global investors. The U.S. depends on them to fund its budget deficit by buying U.S. Treasury bonds. The Congressional Budget Office estimated Monday that the federal budget deficit will total $804 billion this year and exceed $1 trillion a year starting in 2020.

'Our dependence on foreign investors to fund the massive deficit has always been the Achilles' heel of the U.S. dollar,' said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange. 'An abandonment of U.S. assets...is a risk for the dollar.'

While fears over new tariffs and a potential trade war could boost the U.S. dollar against some export-dependent emerging-market currencies such as the South Korean won and Mexican peso, analysts say the dollar is unlikely to gain much against major peers like the euro or Japanese yen. On Monday, the dollar fell 0.3% against the euro and 0.1% against the Japanese yen.

'It's hard to see the dollar going up,' said Steven Blitz, chief U.S. economist at TS Lombard. 'If all these tariffs cause the U.S. economy to slow...the dollar would weaken.'

Investors have already been amassing bets against the dollar over the past year, confounding many Wall Street analysts who had expected the currency to benefit from stronger economic growth, Federal Reserve rate increases and changes to the U.S. tax code that should encourage companies to bring home earnings stashed overseas.

Hedge-fund and other money managers are now holding around $25 billion in bets against the U.S. dollar, according to Scotiabank and Commodity Futures Trading Commission data."

This is not a recommendation to buy or sell.

Last update: Apr 13, 2018 12:46:10 PM

This is not a recommendation to buy or sell.