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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 Thursday was $1,274, down $11 for the week. Monex spot gold prices opened the week at $1,285. . . traded as high as $1,290 on Monday and as low as $1,273 on Tuesday, Wednesday and Thursday. Gold support is now anticipated at $1,275 then $1,264, and then $1,255. . . with resistance anticipated at $1,288, then $1,305, and then $1,320.


The Monex AM closing price on Thursday was $14.96, up $0.09 for the week. Monex spot silver prices opened the week at $14.87. . . traded as high as $15.07 on Wednesday and as low as $14.83 on Monday. Silver support is now anticipated at $14.90, then $14.64, and then $14.40. . . and resistance anticipated at $15.10, then $15.55, and then $15.71.


The Monex AM closing price on Thursday was $899, up $18 for the week. Monex spot platinum prices opened the week at $881. . . traded as high as $890 on Monday and as low as $878 on Tuesday. Platinum support is now anticipated at $885, then $871, and then $855. . . and resistance anticipated at $902, then $921, and then $940.


The Monex AM closing price on Thursday was $1,412, up $58 for the week. Monex spot palladium prices opened the week at $1,354. . . traded as high as $1,413 on Tuesday and as low as $1,337 on Tuesday. Palladium support is now anticipated at $1,380, then $1,355, and then $1,320. . . and resistance anticipated at $1,410, then $1,440, and then $1,471.

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 CPM Group in 4/18 Market Alert Gold At Key Price Level

''CPM Group pointed out in a Market Alert on 29 March that the gold price was at risk of declining, both suddenly and sharply in the near term, and over the next two months. Gold has been trading between $1,280 and $1,330 for most of the first three months of the year ($1,290 as the floor for those looking at the nearby active June Comex contract).

There are various reasons for prices to decline, as they have been since their late February peak. Investors have backed away from their concerns about an imminent economic recession. Stocks have risen to their previous peak in 2018. Many of the factors and trends that affect investor interest in gold and thus gold prices are similar to those that existed in early 2018, when investor economic concerns pushed gold sharply higher, and then sharply lower after those concerns evaporated and were replaced by economic exuberance.

One of the points CPM made on 29 March was the appearance of a 'head and shoulders' pattern on gold price charts. This is important given the dominant role technically driven trading has on short-term buying and selling patterns, and prices. This pattern has a trigger price around $1,280 - $1,287. This level is being tested now. A forceful break below $1,280 would have a technical target around $1,210.

If gold prices rebound above $1,280 quickly, prices could move modestly higher, back toward $1,290, $1,300, or $1,310.

Investors, producers, and others with exposure to gold price changes should be mindful of this risk present in the market. Computers run fast.''

...And From Dividend Investments In 4/15 Commodities: Precious Metals Stage Major Long Term Price Rally

''When investors are looking to establish new trading positions, it is important to have a strong idea of the historical trends which are in place and influencing momentum even today. Most people who take active positions in the precious metals space tend to establish a simple buy-and-hold with little regard for the volatility that can also take place in the bearish direction.

Fortunately, these traders have seen significant gains since 2005 and many annualized periods have actually surpassed the riskier aspects of the stock market. This was particularly true during the most recent financial crisis but as we can see in the chart below, this is a trend that was already in place long before there were any mentions of corporate bailouts, quantitative easing or disruptive announcements about a bankruptcy at Lehman Brothers. This is telling us that something much deeper is actually happening in the financial markets.

The biggest mistake made by most metals investors is to ignore the two-way volatility that is actually present in these markets. This is the activity which provides us with the best trading opportunities (as well as the greatest number of them). Furthermore, rising global debt levels appear to be helping the precious metals markets resume their long term uptrend after an extended period of sluggishness.

The years between 2012 and 2015 give us great examples of these phenomena. Anyone who was reluctant to take profits on the great rally of 2011 ultimately came to regret it. Markets found a bottom once again in 2015 and the sideways ranges that were triggered during this period are now being pressured to the topside. A clear break of the 1400 level in gold prices will likely have a critical effect on bullish momentum in values displayed within the metals complex.

The star of the show might actually turn out to be platinum, which has shown some incredible price action already this year. After hitting lows near 780, the white metal created a double bottom price pattern. This is now critical support for platinum, so the bias remains bullish as long as it can hold these price levels. In reality, these upside changes in platinum prices date back to 2001. So this is really nothing new for traders who have been playing platinum from the long side.

The uptrend line that has been in place for platinum this year might provide critical clues about when it might be time to take profits on long trades. If this clear uptrend breaks its course, it is time for traders to consider pulling out of their long trades and waiting for better opportunities at cheaper price levels. Additional cues can be taken from trend activity in the U.S. dollar, which is also on the cusp of some major trend changes. This could work as more of a fundamental trigger which might precede the technical trigger shown in a potential trendline break in platinum.''

...And From Kelly Olsen in 4/16 Gold Could Hit $1,400 By The End of 2019, Expert Says

''Gold is poised to move higher later this year, powered by the Federal Reserve's less aggressive stance on the lingering global uncertainties, a precious metals expert said Tuesday.

Central banks have been buying gold at levels not seen in 50 years, as part of a broader diversification of reserves away from currencies including the U.S. dollar.

Concerns over the global economy and geopolitical issues including the trade war between the United States and China have added to uncertainty, which often benefits gold that's considered a safe haven - or assets that tent to retain or increase their value even during market turbulence.

Gold prices have largely been stuck in a range of between $1,217 to $1,330, according to Martin Huxley, Singapore-based global head of precious metals at financial services company INTL FCStone. But he said that could change.

'I think that we expect gold to continue to trade pretty much within that range for the coming months,' Huxley told CNBC on Tuesday. 'But over the second half of the year we expect it then to grind higher, and potentially it could test 1,400 towards the end of the year,' he added, referring to gold's price per ounce in relation to the dollar.

Huxley said the Federal Reserve's signal that there will be no more interest rate hikes this year has helped boost the outlook for gold and other metals.'The view is that there won't be any interest rate rises this year, which again will be supportive for the precious metals sector,' Huxley said.

Huxley is not alone in his view on gold. Metals expert Suki Cooper of Standard Chartered said last month she expects bullion to move higher this year. 'We expect gold to end the year on a strong note,' Cooper said on CNBC's 'Futures Now.' 'It's in the fourth quarter that we'll see gold prices testing the highs that we saw in 2018 and 2017, and potentially matching the highs from five years ago.'

INTL FCStone's Huxley, who runs the firm's sales and trading desk, also said that central banks purchased a reported 650 metric tons of gold last year - an amount he said is about 15 percent of the global market.

'And turn the clock back maybe 10 years, before the financial crisis, central banks were net sellers of gold and now there's a dramatic twist, probably a thousand ton twist,' he said. He said that the move into gold is not just by countries such as Russia and Kazakhstan as central banks in Poland, Hungary, the Philippines and, more recently, China have joined in.

'The fact that central banks and the official sector are diversifying their reserves, I think, is a very positive statement for the sector,' he said.

Huxley also said that concerns over global trade, political uncertainty in the United States - which faces a presidential election next year - and problems in the European Union, are issues to be considered for investors.

'I think those factors will generally be supportive for gold,' he told CNBC later.''

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This is not a recommendation to buy or sell.

Last update: Apr 18, 2019 02:28:44 PM

This is not a recommendation to buy or sell.