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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 - July 21, 2017
In the precious metals markets this week...
GOLD

Monex spot gold prices opened the week at $1,234 ... traded as high as $1,255 on Friday and as low as $1,232 on Monday. . . and the Monex AM settlement price on Friday was $1,254, up $20 for the week. Gold support is now anticipated at $1,248 then $1,237, and then $1,217... with resistance anticipated at $1,257, then $1,271, and then $1,297.

SILVER

Monex spot silver prices opened the week at $16.05 ... traded as high as $16.44 on Friday and as low as $16.05 on Monday... and the Monex AM settlement price on Friday was $16.42, up $0.37 for the week. Silver support is now anticipated at $16.17, then $15.88, and then $15.54... and resistance anticipated at $16.44, then $16.76, and then $16.97.

PLATINUM

Monex spot platinum prices opened the week at $927... traded as high as $941 on Friday and as low as $922 on Wednesday. . . and the Monex AM settlement price on Friday was $937, up $10 for the week. Platinum support is now anticipated at $927, then $915, and then $888 ... and resistance anticipated at $954, then $987, and then $1,004.

PALLADIUM

Monex spot palladium prices opened the week at $866. . . traded as high as $871 on Monday and as low as $840 on Friday... and the Monex AM settlement price on Friday was $843, down $23 for the week. Palladium support is now anticipated at $837, then $804, and then $788 ... and resistance anticipated at $865, then $881, and then $913.

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 Jeffrey Christian of the CPM Group on 7/18

"GIn recent weeks there has been a fair bit of discussion in the gold and silver markets about recent downward spikes in the prices of these metals, in late June and the first half of July. The discussions have ignored similar upward spikes in the prices, which is typical of conversations run by conspiracy believers who only look at downward moves. The discussion has reached fund managers and mining executives, who have asked CPM to explain that has been happening.

These are not really flash crashes.

The moves appear to reflect the effects of a combination of program trading, stop-loss order practices, and an influx of institutional money into these markets. They do not appear to be 'fat fingered' erroneous trades or any nefarious efforts to know prices lower.

The reality is that program trading, stop-loss order practices, and the enormous increase in large institutional investors into precious metals have combined to make such events more common. It also is true that these sorts of spikes, up and down, are occurring across all financial markets, including equity indices, currencies, bonds and other commodities due to the same three factors mentioned at the top of this paragraph. It is not specific to gold and silver, it does not involve conspiracies to suppress precious metals."

...And from Myra P. Saefong and Rachel Koning Beals in 7/20 marketwatch.com Gold Moves Higher As U.S. Dollar Sinks

"Gold prices turned higher Thursday as comments from the European Central Bank's president lifted the Euro, pummeling the U.S. dollar.

The ECB, as expected, left interest-rate policy and other stimulative measures untouched. But the euro jumped after ECB heard Mario Draghi pledged to continue the central bank's asset-purchasing through at least December.

That raised the euro-dollar EURUSD, +1.0768%, up by more than 1% and put pressure on the dollar, sending the ICE U.S. Dollar Index DXY, -0.59% which compares the buck against a half-dozen other currencies, down 0.6%. The euro represents the biggest weighting in the ICE dollar gauge. A weaker dollar tends to support prices for gold traded in greenback.

"Although the ECB event is an important factor today, we do think the main denominator which matters the most is the dollar here," said Naeem Aslam, chief market analyst at ThinkMarkets UK.

As for U.S. data, a Philadelphia-area report did soften, while U.S. jobless claims fell - another round of mixed-big economic news that's keeping financial markets guessing on the likelihood of another Federal Reserve interest-rate hike this year or whether a projected tightening might be put off until 2018.

Overall, "fundamentals have been constructive for gold - everything from the (U.S. Special Counsel Robert) Muller news just now to deadlock in Washington, dismal economic growth and geopolitical fears," Bill Baruch chief market strategist at iiTRADER, told MarketWatch.

"However, the technicals are quietly leading the way as well," Baruch said. "Gold held a huge test to the psychological $1,200 level and is now clearly back above the 200-day moving average at $1,238 and is moving north after a small bull flag.""

...And from Ben Eisen in the 7/19 Wall Street Journal Doldrums in Dollar Mean Easier Money

"A deep decline in the dollar this year is easing the flow of money through the financial system, potentially setting up a face-off between investors who are betting on loose financial conditions and Federal Reserve officials who want them tighter.

The Goldman Sachs Financial Conditions Index, a widely watched gauge, was at its lowest since late 2014 this week. The lower the index, the looser the flow of money, based on factors like bond yields, and the value of the dollar against its peers.

Much of that is the result of a falling greenback. The WSJ Dollar Index, a measure of the U.S. currency against 16 others, is down 6.5% since the end of last year. The index was down 0.5% Tuesday at its lowest level since October, before the presidential election spurred a big surge in the dollar.

Investors had bet on a stronger dollar in the immediate aftermath of the election, reasoning that faster economic growth and higher inflation under the Trump administration would lead the Fed to lift rates faster. That was reversed in recent months as economics around the world have proved surprisingly strong relative to the U.S. The dollar continued its decline Tuesday after Republican senators withdrew a health-care bill.

In the fed funds futures market, traders have been betting this month that the chances of another rate increase this year are below 50%, according to CME Group. The measure was recently at 52%, down from about 60% at the end of March."

Last update: Jul 21, 2017 12:10:39 PM

This is not a recommendation to buy or sell.