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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 $1,289, down $5 for the week. Monex spot gold prices opened the week at $1,294. . . traded as high as $1,294 on Monday and as low as $1,280 on Tuesday. Gold support is now anticipated at $1,280 then $1,255, and then $1,228. . . with resistance anticipated at $1,302, then $1,328, and then $1,351.


The Monex AM closing price on Friday was $15.59, down $0.16 for the week. Monex spot silver prices opened the week at $15.75. . . traded as high as $15.76 on Monday and as low as $15.53 on Friday. Silver support is now anticipated at $15.45, then $15.18, and then $14.88. . . and resistance anticipated at $15.80, then $16.02, and then $16.41.


The Monex AM closing price on Friday was $815, down $14 for the week. Monex spot platinum prices opened the week at $829. . . traded as high as $830 on Monday and as low as $814 on Friday. Platinum support is now anticipated at $808, then $790, and then $772. . . and resistance anticipated at $840, then $862, and then $881.


The Monex AM closing price on Friday was $1,302, up $23 for the week. Monex spot palladium prices opened the week at $1,279. . . traded as high as $1,313 on Friday and as low as $1,266 on Monday. Palladium support is now anticipated at $1,290, then $1,271, and then $1,220. . . and resistance anticipated at $1,320, then $1,341, and then $1,392.

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.
From Marvin G. Perez in 1/10 Goldman Predicts Gold Prices to Climb to Highest Since 2013

''Goldman Sachs Group Inc. is leading a pack of bullish voices cheering for gold.

The New York based bank's analysts led by Jeffrey Currie raised their price forecast for gold, predicting that over the next 12 months,the precious metal will climb to $1,425 an ounce - a level not seen in more than five years. Bullion has benefited as rising geopolitical tensions fuel central bank purchases while fears of a recession helped boost demand from investors seeking 'defensive assets,' they said.

Even exchange-traded funds are piling into bullion, taking their holdings to the highest since May. On the Comex in New York, prices have climbed 10 percent from a low in August. Speculative interest in the gold signals investors are not only closing bearish bets but are also adding their bullion position, Suki Cooper, a New York-based analyst at Standard Chartered, said in a note.

Gold is also getting a boost from mounting speculation the Federal Reserve may pause in raising borrowing costs, boosting the appeal of non-interest-bearing metal.

'We expect the safe haven bid, and to a lesser extent, gold's inflation hedge properties, to remain key drivers of the metal's price in 2019, complemented by a resurgence of physical demand,' Cantor Fitzgerald analysts led by Mike Kozak said in a report. Gold and silver are 'looking good in 2019,' underlining a potentially positive indicators that 'should drive a bullish case' for both metals 'and as a result, the related equities as well.'''

...And From Rueters In 1/10 Powell Still Patient, But Balance Sheet Comments Raise Concern

''Federal Reserve Chairman Jerome Powell reiterated his statement that the FOMC would be patient on monetary policy Thursday, but he hit equity markets after raising worries again that quantitative tightening of the Fed's balance sheet would be on autopilot.

The S&P 500 was flat in afternoon trading, but sentiment on equities turned sour somewhat as Powell said the Fed's balance sheet will be "substantially smaller," indicating the central bank will press ahead with its balance sheet wind-down operation, which peaked at roughly $4.5 trillion in Jan. 2015, but has now narrowed to about $4 trillion.

The Fed chief did not give a timeline for winding down the balance sheet.

On interest rates, Powell said the central bank will be ''patient'' as it weighs the pace of global growth and domestic inflation, reaffirming investor expectations for a slower pace on monetary policy tightening.

Powell's cautious tone served as another sign that the Fed is no hurry to hike up rates and comes just a day after the release of the central bank's December meeting minutes, in which policymakers cited waning inflation, worsening financial conditions and slowing global growth as reason to 'be patient about further policy firming.

Powell also touched on the growing disparity between good momentum in economic data and concerns in financial markets over risks, stressing the underlying economy remained robust.

'Especially with inflation low and under control we have the ability to be patient and watch patiently and carefully as we ... figure out which of these two narratives is going to be the story of 2019,' he said.

Powell downplayed the short-term impact of the ongoing U.S. government shutdown, which entered its third week Monday, but said an extended shutdown would lead to a less clear picture of the economy on which to base monetary policy decisions.

In the midst of the ongoing trade spat between the US and China, the Fed chairman said Apple's (NASDAQ:AAPL) iPhone sales warning shows growth is slowing in China, though he still expected the Chinese economy to generate 'solid growth' this year.

Powell also expressed concern about the bulging amount of U.S. debt, which stands at about $21.9 trillion, saying he was 'worried about it.'''

...And From Ira Iosebashvili in 1/7/19 Wall Street Journal Investors Seek Safety in the Yen, Gold

''Uneven economic data and volatility in stocks have accelerated a surge into assets perceived as relatively safe, highlighting the unease felt by many investors at the start of 2019.

The Japanese yen is up nearly 5% against the dollar since markets began sliding at the end of last year's third quarter. That move picked up speed after weaker-than-expected manufacturing data and a sales warning from Apple Inc. last week bolstered fears of a global slowdown.

Other so-called haven assets are also rising. Gold prices have strengthened around 7% in that period and stand near their highest level in about half a year, and gold-focused funds have notched inflows in 12 of the past 13 weeks, according to fund tracker EPFR Global.

The broad shift towards havens suggests that investors are now more eager to diversify their holdings in the face of recent market swings. Investors rushed into the yen but were cooler to other assets, like gold, during a bout of volatility in the first months of 2018. Some market participants believe that assets such as gold and the yen will hold their value better if markets remain rocky or the expansion slows.

'Clearly, investors are a bit rattled and are looking for ways to diversify,' said Axel Merk, president of San Francisco-based Merk Investments.

Some analysts expect weaker U.S. data and diminished rate-increase expectations to drag down the U.S. dollar, giving a tailwind to have assets such as gold, which is denominated in the U.S. currency and becomes more affordable to foreign investors when the dollar declines.''

...And in 1/10 Once The 'Most Hated Metal' Silver Is Now In An Uptrend

''The precious metal silver is seeing a strong start in 2019, with prices near their highest levels in almost six months. It is a great buying opportunity for investors now, metal analysts say.

Continued financial market volatility and a weaker US dollar should continue to support silver prices, according to Mike McGlone, senior commodity strategist at Bloomberg Intelligence.

He was cited by Kitco News as saying that silver's weakness in the second half of last year was a ''failed bear-market raid.'' However, the metal's resilience in the face of extreme weakness could mark a long-term bottom for the precious metal as buying momentum picks up.

The critical level investors should keep an eye on is $16.35 an ounce, McGlone said, explaining it as a long-term resistance level. On Thursday, silver was trading at $15.72 an ounce, up 0.44 percent.

''Silver is poised in 2019 to move above a resistance level that has held the market in check for three years, in our view,'' the strategist said. ''A primary companion of higher silver prices - a weakening dollar - is likely to join the recovery in gold and industrial-metals prices.''

Ira Epstein, director of the Ira Epstein Division of Linn & Associates, also said that he was bullish on the metal.

In a note to clients, he said that he sees a potential for silver to move higher through the year as it looks like the Fed will scale back its monetary policy tightening.

''As I see it, silver is now in an uptrend. Long positions are now warranted and should be held to as long as prices don't close back under the 18-day moving average,'' he said.

The expert said he was looking for initial resistance at $15.955, adding that with its current momentum, the metal has room to run to $17 an ounce.

Canadian investment bank and financial services provider TD Securities also sees silver prices pushing to $17 an ounce by the end of the year. It has projected silver outperforming the sister metal gold in 2019, adding that global demand for silver is expected to grow.

Silver disappointed many investors last year, becoming ''the most hated precious metal'' of 2018, according to precious metals analyst at Metal Bulletin Boris Mikanikrezai. He said the metal constitutes a long-term buying opportunity.

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This is not a recommendation to buy or sell.

Last update: Jan 11, 2019 11:32:48 AM

This is not a recommendation to buy or sell.