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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 17, 2017
In the precious metals markets this week...
GOLD

Monex spot gold prices opened the week at $1,276 . . . traded as high as $1,296 on Friday and as low as $1,276 on Wednesday and Thursday. . . and the Monex AM settlement price on Friday was $1,296, up $20 for the week. Gold support is now anticipated at $1,291 then $1,282, and then $1,264. . . with resistance anticipated at $1,297, then $1,306, and then $1,330.

SILVER

Monex spot silver prices opened the week at $16.86 . . . traded as high as $17.37 on Friday and as low as $16.84 on Monday. . . and the Monex AM settlement price on Friday was $17.33, up $0.47 for the week. Silver support is now anticipated at $17.24, then $17.08, and then $16.78. . . and resistance anticipated at $17.45, then $17.80, and then $18.07.

PLATINUM

Monex spot platinum prices opened the week at $932. . . traded as high as $956 on Friday and as low as $922 on Tuesday. . . and the Monex AM settlement price on Friday was $953, up $21 for the week. Platinum support is now anticipated at $938, then $907, and then $888 . . . and resistance anticipated at $955, then $988, and then $1,020.

PALLADIUM

Monex spot palladium prices opened the week at $991. . . traded as high as $995 on Monday and as low as $974 on Tuesday and Wednesday. . . and the Monex AM settlement price on Friday was $994, up $3 for the week. Palladium support is now anticipated at $988, then $1,008, and then $1,020 . . . and resistance anticipated at $948, then $910, and then $888.

QUOTES OF THE WEEK...
***Want to know the latest on gold and silver in this age of uncertainty? Monex VP Mike Maroney offers analysis and commentary on recent activity in the economy, geopolitics and the precious metals markets. Check out video here http://www.monex.com/age-of-uncertainty/

From Amrith Ramkumar and Christopher Alessi in 11/17 Wall Street Journal Gold Prices Rise but Stay in Tight Range

"Gold prices inched higher Thursday, boosted for much of the session by a weaker dollar.

Gold for December delivery closed up less than 0.1% at $1,278.20 a troy ounce on the Comex division of the New York Mercantile Exchange.

Prices have traded roughly sideways in November and sit about 5.5% off their year-to-date highs from early September, weighed down by a stronger dollar and interest-rate concerns.

'This range has definitely not been a trader's market. It's been one of the tightest ranges I can remember,' said Chris Gaffney, president of EverBank World Markets.

Although the market already expects the Fed to raise rates in December, some analysts have said the central bank's outlook moving forward based on inflation readings at the end of the year could swing gold prices.

Many investors tend to favor gold and other haven assets during times of geopolitical uncertainty, believing they will hold their value better if markets turn rocky. Some analysts also have said a pullback in equities could fuel a rally in gold prices."

...And From Ira Iosebashvili in 11/17 Wall Street Journal House Tax Vote Nudges Dollar Up

"The dollar edged higher Thursday as investors weighed the odds of Republican lawmakers pushing through tax legislation in coming weeks.

Expectations for a tax overhaul have helped lift the dollar in recent months, although that rally has wavered in November. The dollar has fallen by more than 1% since last week.

Some analysts believe the dollar is headed lower, even if a tax bill passed. 'We think the dollar is in the early throes of a multiyear downtrend,' said Steven Barrow, head of G-10 strategy at Standard Bank.

Mr. Barrow noted that the dollar has tended historically to weaken during Republican presidential administrations."

From Andrew Hecht in 11/15 www.seekingalpha.com Standoff In The 2 Most Popular Precious Metals

"Gold and silver find themselves at a watershed moment, and over coming weeks a standoff between the two precious metals and other markets could be what is in store for the metals that thrive in the environment of fear and uncertainty.

Neither gold nor silver could reach their 2016 highs during 2017. While gold remained above the December 2016 low, silver traded to the lowest level since April 2016 in July after a flash crash took the price of the volatile metal to a bottom of $15.25 per ounce. However, with one and one-half months to go in this year, both metals are above their December 2016 bottoms, but price action has been hardly exciting for those looking for higher prices over recent weeks.

The world tends to be a volatile place filled with problems that result in uncertainty in markets. However, these days the global scene is a minefield of issues that threaten to impact markets each day. North Korea is now a nuclear power which is unacceptable to the United States. While Kim Jong Un has not test fired any missiles since September, the rhetoric between the leader of the hermit nation and President Trump continues to fly back and forth.

The Middle East always tends to be a political mess, but recent events have heightened tensions to a new high. The standoff between Saudi Arabia and Iran and the proxy war in Yemen with the potential for another in Lebanon could cause dangerous flare-ups in the region.

Any one of these issues, or others smoldering below the surface, could erupt at a moment's notice which is supportive for the prices of the two precious metals that tend to thrive on fear and uncertainty. At the same time, all standard measures of inflationary pressures remain under control, but almost a decade of accommodative monetary polity and artificially low rates of interest in the United States, Europe, and around the world have flooded the system with unprecedented amounts of liquidity. The potential for an inflationary spike at some point in the future is also a supportive factor for precious metals prices.

The U.S. Federal Reserve has made no secret about its plan to hike rate by 25 basis points at their last meeting of the year in December. At a recent meeting of the FOMC, twelve of the sixteen members of the committee favored a rate hike in December, and eleven members see three more 25 basis point increases in the Fed Funds rate in 2018.

The two precious metals that market participants turn to during times of fear and uncertainty are facing a standoff as the geopolitical landscape and economic realities of today are at odds. The trading ranges are both gold and silver have narrowed, and as they look over their shoulders, they see a troubled world on one side and an end to the liquidity that flooded the system on the other. There are bullish and bearish factors at play in the precious metals markets, and maybe that is why they did not react to the lower dollar this week."

Last update: Nov 17, 2017 11:41:59 AM

This is not a recommendation to buy or sell.