|Mar 16, 2007 7:33 pm
||PRECIOUS METALS REVIEW - 03/16/07 & Quotes of the Week
|| PRECIOUS METALS REVIEW - 03/16/07
In the precious metals markets this week . . .
Monex spot gold prices opened the week at $651 . . . traded as high as $655 on Friday and as low as $637 on Wednesday . . . and the Monex AM settlement price on Friday was $652, up $3 for the week. Gold support is now anticipated at $642.50, then $635, and then $612 . . . and resistance anticipated at $655.50, then $660, and then $672.
Monex spot silver prices opened the week at $12.93. . . traded as high as $13.18 on Friday and as low as $12.61 on Wednesday . . . and the Monex AM settlement price on Friday was $13.12, up $.22 for the week. Silver support is now anticipated at $13.07, then $13.00 and then $12.88 . . . and resistance anticipated at $13.20, then $13.34, and then $13.55.
Monex spot platinum prices opened the week at $1,205 . . . traded as high as $1,222 on Friday and as low as $1,197 on Monday . . . and the Monex AM settlement price on Friday was $1,219, up $17 for the week. Platinum support is now anticipated at $1,215, then $1,196, and then $1,180 . . . and resistance anticipated at $1,224, then $1,240, and then $1,270.
Monex spot palladium prices opened the week at $350 . . . traded as high as $354 on Monday and as low as $345 on Wednesday . . . and the Monex AM settlement price on Friday was $351, unchanged for the week. Palladium support is now anticipated at $348, then $334, and then $329.25 . . . and resistance anticipated at $356, then $362 and then $375.
QUOTES OF THE WEEK:
From the Financial Times, on Tuesday March 13th, regarding the growing problems in the U.S. subprime mortgage industry:
"The rapid decline of New Century, the latest problem at US subprime lenders, raised concerns that problems could spread in the $8,000bn mortgage industry and to other parts of the capital markets.
Reaction in the markets was muted. US government bonds rallied as investors shifted cash into the safety of Treasuries. Stocks edged slightly higher, though shares in other subprime lenders continued to fall.
Shares in Countrywide Financial, the fourth-largest US subprime lender, fell almost 3 per cent to $35.14 after the company said foreclosures hit a five-year high of 0.70 per cent in February and that turmoil in the subprime market could hurt earnings.
Market participants were also braced for the possibility that if New Century collapsed it could lead to broad investigations into practices across the subprime lending market.
Some economists also fear that the collapse in subprime loans could trigger wider house price falls."
. . . and from market analyst James Sinclair, writing on his jsmineset.com website on Monday, March 12th:
"As I look at today's gold and dollar market it strikes me that the US dollar, which has had significant opportunity to take the technical advantage and move swiftly and significantly higher, has failed to do so. It has fallen precipitously on news, then after the fall as if the dollar has its own (or perhaps the same) Plunge Protection Team, it steadies at the lower level.
This says to me that as time goes by and the Asian big central banks turn from slowed acquisition of US treasuries to other means of divesture, no matter what they do they will increase the supply of dollars internationally. There is NO harmless way to diversify out of a former reserve currency, even by the purchase of assets as dollars are exchanged into the international pool of that currency, thereby increasing supply. Also where do you get the dollar, Mr. Asia? They are in treasuries now. Do you trade US Treasuries for African copper and nickel, asking the sellers of the raw materials not to sell the US treasuries they receive?
The USD - PPT will be defending the dollar at USDX .8000, .7800, .7600, .7200 and potentially much lower."
. . . and finally, from the CPM Group on Thursday March 15th, at an event on the release of their 2007 Gold Yearbook, on investors' recent gold buying habits:
"Never before in history have so many investors, spread throughout a truly global array of geographic and demographic universe, spent so much money buying so much gold over such an extended period of time."
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