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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 $1,736, up $2 for the week. Monex spot gold prices opened the week at $1,734. . . traded as high as $1,739 on Monday and as low as $1,697 on Wednesday. Gold support is now anticipated at $1,725 then $1,708, and then $1,688. . . with resistance anticipated at $1,748, then $1,766, and then $1,790.


The Monex AM closing price on Friday was $18.45, up $.90 for the week. Monex spot silver prices opened the week at $17.55. . . traded as high as $18.45 on Friday and as low as $17.24 on Wednesday. Silver support is now anticipated at $17.80, then $17.61, and then $17.24. . . and resistance anticipated at $18.55, then $18.78, and then $19.01.


The Monex AM closing price on Friday was $876, up $6 for the week. Monex spot platinum prices opened the week at $870. . . traded as high as $888 on Thursday and as low as $858 on Wednesday and Thursday. Platinum support is now anticipated at $860, then $841, and then $822. . . and resistance anticipated at $889, then $908, and then $924.


The Monex AM closing price on Friday was $1,929, down $52 for the week. Monex spot palladium prices opened the week at $1,981. . . traded as high as $2,002 on Monday and as low as $1,889 on Thursday. Palladium support is now anticipated at $1,900, then $1,880, and then $1,847. . . and resistance anticipated at $1,965, then $1,990, and then $2,055.

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By Mark DeCambre in 5/28 Gold Prices Eke Out A Gain As China-U.S. Tensions Support Haven Buying

''Gold futures finished slightly higher Thursday as China-U.S. tensions remained in focus, driving haven buying on Wall Street.

''Souring China-U.S. relations are back on the front burner of the marketplace,'' wrote Jim Wyckoff, senior analyst at in a Thursday research note.

Elevated animosities between Beijing and Washington over China's human rights policies, including its relationship with Hong Kong and the treatment of a Muslim minority, have underpinned buying in safe-haven assets.

China on Thursday hardened its stance, forging ahead with a resolution to impose national-security laws on Hong Kong in a bid to suppress protests there.

That action comes after the U.S. House of Representatives on Wednesday passed a bill that would sanction Chinese officials involved in the suppression of Uighurs. The proposal follows the U.S. State Department's determination that Hong Kong no longer was autonomous from China, opening the way for President Donald Trump to take a range of steps including revoking special arrangements on trade.

Investors also pointed to further talk about U.S. monetary policy, including negative interest rates, and increased appetite for gold-focused exchange-traded funds as part of the driver for gains for gold despite a climb for global stocks.

August gold GCQ20, 0.27%, GC00, 0.27%, which is now the most-active contract, ended $1.50, or 0.1%, higher at $1,728.30 an ounce, well off its intraday high at $1,743.70.

July silver SIN20, 0.92% rose 21 cents, or 1.2%, to end at $17.967 an ounce.

A string of U.S. economic reports that highlight the toll of the COVID-19 pandemic did little to sway gold momentum on the session.

On Thursday, the Labor Department said 2.12 million unemployed Americans applied for state unemployment benefits in the week ended May 23. That is down from 2.4 million in the prior week.

Meanwhile, data showed that the U.S. economy contracted at an annual 5% pace in the first quarter instead of 4.8%, revised government data show. A downward revision to inventory investment mostly accounted for the downward revision, the Commerce Department, while orders for durable goods tumbled 17.2% in April. Economists polled by MarketWatch had expected a drop of 18.2%.

However, investors have noted that gold has been unable to break toward $1,800 an ounce.

''The stock market remains strongly supported, but it won't be at the expense of safe-haven selling,'' wrote Edward Moya, senior market analyst at Oanda in a daily research note. 'Gold has struggled to break above $1800 and that the next couple of weeks could be a frustration phase for bullish investors,'' he wrote.''

...And Lucia Mutikano in 5/28 U.S. Weekly Jobless Claims Drop, But Economic Recovery Still Elusive

''The number of Americans seeking jobless benefits fell for an eighth straight week last week, likely as some people returned to work, but claims remained at astonishingly high levels, suggesting it could take the economy a while to rebound as businesses reopen.

The Labor Department's weekly jobless claims report on Thursday, the most timely data on the economy's health, also showed a decline in the number of people receiving unemployment checks in mid-May. The data, however, excludes gig workers and others collecting benefits under a federal government program.

These workers do not qualify for the regular state unemployment insurance. The various programs, different reporting periods and protocols at state unemployment offices make it hard to get a clear pulse on the labor market.

Economists said the government's Paycheck Protection Program, part of a historic fiscal package worth nearly $3 trillion, which offered businesses loans that could be partially forgiven if they were used for employee salaries, was also creating confusion.

''We are entering the confusion stage for the employment and unemployment numbers,'' said Joel Naroff, chief economist at Naroff Economics in Holland, Pennsylvania. ''Reopening of the economy is taking people from government payrolls to private sector payrolls, which is good. But the PPP is creating problems with understanding what exactly is happening.''

Initial claims for state unemployment benefits fell 323,000 to a seasonally adjusted 2.123 million for the week ended May 23, the Labor Department said. Claims have declined steadily since hitting a record 6.867 million in late March, but have not registered below 2 million since mid-March.

Economists polled by Reuters had forecast initial claims falling to 2.1 million in the latest week. Layoffs persist in the insurance, educational services, public administration, transportation and warehousing, agriculture, construction, manufacturing and retail trade industries.

The astonishingly high level of claims, nearly three months after the shuttering of non-essential businesses to control the spread of COVID-19, points to a long recovery for the economy.

That was underscored by other data from the Commerce Department on Thursday showing business spending on equipment plummeting in April and the economy contracting at a much steeper 5.0% annualized rate in the first quarter instead of the previously estimated 4.8% pace.

Data in hand, including on the housing market, manufacturing and consumer spending has left economists expecting gross domestic product could drop in the second quarter at as much as a 40% rate, the worst since the Great Depression.

Stocks on Wall Street were trading higher, but simmering tensions between the United States and China kept investors on edge. The dollar eased against a basket of currencies. U.S. Treasury prices dipped.''

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This is not a recommendation to buy or sell.

Last update: May 29, 2020 12:04:45 PM

This is not a recommendation to buy or sell.