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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 . . . 

Monex spot gold prices opened the week at $1,277 . . . traded as high as $1,306 on Thursday and as low as $1,274 on Monday . . . and the Monex AM settlement price on Friday was $1,292, up $15 for the week.  Gold support is now anticipated at $1,276, then $1,255, and then $1,230 . . . with resistance anticipated at $1,307, then $1,323, and then $1,341.

Monex spot silver prices opened the week at $17.74 . . . traded as high as $18.50 on Wednesday and as low as $17.68 on Monday . . . and the Monex AM settlement price on Friday was $18.32, up $.58 for the week.  Silver support is now anticipated at $17.75, then $17.35, and then $17.03 . . . and resistance anticipated at $18.48, then $18.79, and then $19.15.

Monex spot platinum prices opened the week at $1,266 . . . traded as high as $1,289 on Thursday and as low as $1,265 on Monday . . . and the Monex AM settlement price on Friday was $1,270, up $4 for the week.  Platinum support is now anticipated at $1,265, then $1,246, and then $1,229 . . . and resistance anticipated at $1,288, then $1,304, and then $1,343.

Monex spot palladium prices opened the week at $763 . . . traded as high as $781 on Tuesday and as low as $756 on Monday . . . and the Monex AM settlement price on Friday was $775, up $12 for the week.  Palladium support is now anticipated at $758, then $745, and then $734 . . . and resistance anticipated at $778, then $802, and then $823.


All-new 2015 ''Market Outlook'' reports for the Gold, Silver and Platinum/Palladium markets, produced for Monex by the CPM Group, have just been published and are now available free of charge from Monex.  To receive copies of these new reports, call your Monex Account Representative.

For an introduction to the CPM Group's views on the gold, silver and PGM markets in 2015 and beyond, please watch the Monex ''Metals Market Update'' video recently posted on the Monex website, here:  Link


From Michael Lingenheld, in a posting on the Forbes website on January 20th:

''Market developments over the past six months have created an environment where a 'crisis' seems all but inevitable.  The world's reserve currency, USD, is now 17% stronger than it was in June on a trade-weighted basis.  Europe and Japan, the world's largest and fourth largest economies, are in recession, while China, the third largest economy, is getting ready to lower growth forecasts.  Indicative of weak demand, the CRB Commodity Index is down 41% since its 2011 peak.

The world's most important commodity, crude oil, has fallen more than 60% since June.  Economists are still divided about whether or not cheaper oil is good for the economy.  The bullish camp argues that lower prices at the pump are the equivalent of a tax cut.''

''While the impact on the broader economy is debatable, historically, extreme fluctuations in oil have wreaked havoc on financial markets.  Several metrics indicate we're headed for major volatility.  For instance, since 1990, every time 1oz. of gold bought more than 20 barrels of crude oil, there was some form of 'crisis.'  Since November, the gold/crude ratio has been surging higher and recently broke through 24.  On average, the ratio has historically traded around 15.''

 ''Does this mean that gold is overvalued or that crude is cheap?  It's too soon to tell, but the last two 50%+ declines in crude oil, during 1986 and 2008, predated 25% gains in gold in the following year.  Perhaps both are poised to appreciate.  Oil's fundamentals still look weak, but most of the global supply comes from the Middle East and Russia -- far and away the world's most hostile regions.  Gold may look expensive relative to oil, but it too has been stuck in a bear market.

While the gold / oil ratio above 20 may be an arbitrary indicator, it has accurately predicted 4 'crises' over the past 25 years.  It's also a clear signal that investors are nervous, preferring safety over growth.  The global economy is sailing through unchartered waters, and gold/crude could be pink skies in the morning.  Sailors, take warning.''

. . . and from Richard Russell, founder of Dow Theory Letters, in remarks posted on his website on January 20th:

''The world depression has settled down on mankind.  In the meantime every nation is struggling to cheapen its currency.  One way of doing this is that central banks are creating new trillions of assorted world currencies.  It's rapidly dawning on the wealthy one percent that the fiat currencies they hold are fast becoming worthless.  The worst of the fiat currencies have suddenly come into question.  The reaction of big money is to swap their garbage currencies for the only currency that has held its worth in all of history -- gold.

Already you can feel the sweep of the new rush into gold.  The base is now complete for the resumption of the bull market in gold.''

''Years of QE has loaded the world with a variable notion of fiat money.  The avalanche of fiat money will be lighting a fire under the world's stock markets, and we see hints of this now as the Dow, which was negative most of the day, has turned plus near the close.

Owners of fiat money see the chance of buying real, trustworthy money (gold) and will be moving heavily into gold as the days pass.  As I write now, a half hour before the close, gold is up $14 to 1294.70.  I think it will only be days before gold hurdles resistance at 1300 and moves to new highs.

At the same time, the Dow is only a handful away from 18,000, and could easily rally to new record highs.  The Transportation average, helped by the collapse in oil prices, is up 97 points.

If you're now holding cash, which is only fiat money, this is the time to switch to honest money, the only money that has held its value throughout the centuries -- gold.''

. . . and from Scott S. Powell, in an editorial on the ''Issues & Insights'' page of Investor's Business Daily on January 21st:

''Given the current high level of risk in the U.S. economy, and specifically the asset bubbles induced by the Fed, 2015 will be a very challenging year.  The Fed has basically come to the end of the line.  It cannot cut zero-interest rates further, and further debt monetization on top of a $4.5 trillion balance sheet is too risky to contemplate.

What is essential for 2015 is more economic growth from fiscal policies of tax reform and regulatory relief, which would help the Fed expedite normalization of interest rates and selling assets to shrink its balance sheet.

This is absolutely imperative not only to break the cycle of economic malaise but also to restore the nation's economic insurance policy.  As long as it exists and if for no other purpose, the Fed should have the essential tools needed to cope with the next inevitable financial crisis.''

. . . and from Tatyana Shumsky, in an article on the front page of the ''Money & Investing'' section of The Wall Street Journal on January 23rd:

''Gold and silver are drawing buyers of all stripes, a sign fears about a worsening economic outlook run deep in financial markets.  The metals are popular havens for nervous investors but had fallen out of favor after setting price records in 2011 as the U.S. recovery gained speed.  Now these metals are luring back some money managers, as collapsing oil prices, fears of a recession in Europe and volatility in currency markets shake their faith in stocks and other investments.

Both metals remain far below their peaks, and many investors are skeptical that economic conditions are dire enough to sustain recent gains.  But others make the case that gold and silver look more promising than stocks, which are at or near record highs in many markets, or government bonds, where yields are near zero across the developed world.  Some investors also are embracing metals as a store of value in case policies like those announced by the ECB spur inflation.

''Fund managers stocking up on precious metals say they expect gold and silver to retain or rise in value more than other havens, like sovereign bonds or currencies, as the world's central banks continue to pour cash into the global credit system.

Gold and silver bulls point to actions like the ECB took Thursday, when it said it would buy 60 billion euros ($70 billion) a month in public and private-sector debt starting in March.  The ECB follows in the footsteps of the U.S. and Japan, which have undertaken similar measures intended to lower interest rates broadly and spur growth.  Another result of those efforts has been a weaker currency, especially in Japan, which makes domestic wares cheaper to overseas buyers.

'There's competitive currency devaluation occurring . . . Gold is your natural hedge against that,' said Michael Tiedemann, who oversees $9.5 billion as chief investment officer of Tiedemann Wealth Management.''

Last update: Jan 23, 2015 11:31:35 AM

This is not a recommendation to buy or sell.