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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.

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PRECIOUS METALS REVIEW - MAY 22, 2015

In the precious metals markets this week . . .  

GOLD:
Monex spot gold prices opened the week at $1,225 . . . traded as high as $1,229 on Monday and as low as $1,202 on Thursday and Friday . . . and the Monex AM settlement price on Friday was $1,204, down $21 for the week.  Gold support is now anticipated at $1,200, then $1,183, and then $1,160 . . . with resistance anticipated at $1,214, then $1,228, and then $1,245.

SILVER:
Monex spot silver prices opened the week at $17.65 . . . traded as high as $17.75 on Monday and as low as $16.88 on Tuesday . . . and the Monex AM settlement price on Friday was $17.04, down $.61 for the week.  Silver support is now anticipated at $16.97, then $16.73, and then $16.48 . . . and resistance anticipated at $17.22, then $17.48, and then $17.78.

PLATINUM:
Monex spot platinum prices opened the week at $1,169 . . . traded as high as $1,179 on Monday and as low as $1,146 on Friday . . . and the Monex AM settlement price on Friday was $1,147, down $22 for the week.  Platinum support is now anticipated at $1,145, then $1,121, and then $1,095 . . . and resistance anticipated at $1,178, then $1,197, and then $1,238.

PALLADIUM:
Monex spot palladium prices opened the week at $795 . . . traded as high as $798 on Monday and as low as $770 on Friday . . . and the Monex AM settlement price on Friday was $784, down $11 for the week.  Palladium support is now anticipated at $781, then $768, and then $755 . . . and resistance anticipated at $791, then $803, and then $822.

* * * NEW VIDEO FEATURING ''AFTERSHOCK'' AUTHOR BOB WIEDEMER * * *
Why Gold? . . . Why Silver? . . . and Why Now?  Bob Wiedemer, co-author of the best-selling ''Aftershock'' books, sat down for another Monex video interview recently and offered some surprising forecasts for the stock and bond markets, the U.S. Dollar and the precious metals markets . . . and suggests SILVER may be one of the best opportunities on the board in the weeks and months ahead.  Watch selected clips from that interview here:  Link to Video

QUOTES OF THE WEEK:

From Randall W. Forsyth, in his ''Up & Down Wall Street'' column in the May 18th issue of Barron's magazine:

''. . . there seem to be signs of demand stirring for the barbarous relic, according to the latest quarterly report from the World Gold Council.  Demand for the metal in the form of bars and coins perked up in Europe, rising 16%, year-on-year.  The trade group attributed the revival to geopolitical concerns, ranging from a possible exit by Greece from the euro, to the Ukraine conflict and the European Central Bank's quantitative easing.

Mentioned only obliquely was the dollar, whose sharp rise had capped the prices of gold and other metals.  But in terms of the falling euro, gold has rallied.  More recently, the greenback's ascent has at least stalled, if not topped, reducing the dollar's drag on real assets.  Moreover, negative interest rates imposed by the ECB and other central banks eliminated the traditional opportunity cost in holding precious metals.''

''What do the 0.001% who are scooping up multimillion-dollar modern art and Manhattan flats have in common with those of more modest means who are buying gold?  Both seem to express the same feeling that central banks' monetary printing presses have mainly inflated asset values and will continue to do so.  And with many of those central banks imposing negative interest rates, either in nominal or real terms, there's no penalty for owning gold.

That the yellow metal remains largely out of favor, unlike Picassos and posh pads, is another plus.''

. . . and from Biman Mukherji, in an article in The Wall Street Journal on May 20th:

''Among precious metals, palladium has rarely shone brightest for investors.

Yet in recent weeks, the metal, used mostly in catalytic converters for cars, has been commanding more attention than gold, silver and platinum, its more glamorous counterparts.

Analysts expect solid auto sales in China and the U.S., together with tighter environmental standards, to keep growth in demand for palladium strong enough to potentially outpace increases in supplies.  The market was in deficit last year, and there could be shortfalls this year, in 2016 and in 2017, analysts at Australia & New Zealand Banking Group Ltd. predict.

Already, palladium's price has risen 8% to $785 an ounce since hitting $726 an ounce in March, its lowest point so far this year.

'Fundamentally, palladium is our favorite metal,' says Simona Gambarini, an analyst with Capital Economics in London, citing the likelihood that demand will persistently outstrip supplies.''

''While demand looks secure, there are clouds over supply from Russia and South Africa, the countries that produce the bulk of the metal.

Russia's Norilsk Nickel, the world's largest palladium producer, has signaled its output could decline by around 5%-6% this year.  It accounts for about 45% of global production.

Meanwhile, in a sign Russia may be getting close to exhausting government stockpiles of palladium, sales from those holdings have declined over the last decade, Goldman Sachs said in a report last week.''

. . . and from Zeke Faux and Max Abelson, in a news posting on the BloombergBusiness website on May 20th:

''Wall Street's biggest banks admitted Wednesday to rigging currency markets around the world.  Within minutes of the Justice Department's announcement, they were blaming it on a few rotten apples.

'I share the frustration of shareholders and colleagues that some individuals have once more brought our company and industry into disrepute,' Barclays Plc Chief Executive Officer Antony Jenkins said in a statement announcing his bank's guilty plea.

JPMorgan Chase & Co. CEO Jamie Dimon also pointed a finger at a few currency traders.''

''Barclays and JPMorgan were among banks that didn't detect and address traders' illegal cooperation to manipulate benchmark currency prices, the Federal Reserve said Wednesday.  Among the clues they missed: an instant-message group called 'The Cartel,' where dealers exchanged information on client orders and decided how to trade.

Under a $5.8 billion settlement, JPMorgan, Barclays and units of Citigroup Inc. and Royal Bank of Scotland Group Plc agreed to plead guilty to conspiring to manipulate the price of U.S. dollars and euros.''

. . . and from Myra P. Saefong, in a posting on the MarketWatch website on May 22nd:

''This year, the global platinum market may see a supply deficit of 190,000 ounces, according to a report from the World Platinum Investment Council released this week.  That would be down more than 70% from the 670,000-ounce deficit the market saw in 2014.''

''Commodities Economist Simona Gambarini at Capital Economics . . . believes the markets for the two metals will be 'significantly tighter than the consensus currently anticipates' for this year.

Citing data from Johnson Matthey, the world's biggest refiner of platinum group metals (PGMs), Gambarini said demand for the PGMs outstripped supply for a third consecutive year in 2014.''

''And with the 'prevailing low prices and low levels of positioning,' she believes the 'potential upside is far greater than the downside,' for the two metals.

Platinum prices trade close to their lowest since 2009, while palladium prices haven't yet returned to the levels seen in 2001, when the market wasn't even in a deficit, she said.

In the second half of the year, platinum and palladium prices will recover, Gambarini said, reiterating a year-end price forecast of $1,400 for platinum and $900 for palladium.''

Last update: May 22, 2015 11:06:44 AM

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