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The Week In Review – April 30, 2010
April 30, 2010
The Week in Review
US regulators announced this week that Moore Capital Management LP agreed to pay $25 million to settle charges that they attempted to manipulate platinum and palladium futures two years ago. The number of futures contracts involved in the manipulation scheme is tiny when compared to the manipulation that’s been going on in the gold and silver market. Perhaps this is a positive sign that the CFTC will follow through on their investigation and will take JP Morgan Chase and HSBC to task as well.
Consumer sentiment fell in April, but was still better than expected. Richard Curtin, director of the Thomson Reuters/University of Michigan’s Surveys of Consumers said “Confidence in the economic policies and legislation promoted by the Obama administration remained at low levels, although confidence did record a small rebound in late April”
Moody’s downgraded nine Greek banks this week, even as a solution on the EU/IMF bailout appeared to be in sight, possibly as soon as this weekend. The price of having to use the bailout package will apparently be a complete overhaul of the Greek economy. As Amadeu Altafaj, a European Commission spokesman said: “The entire economy is going to have to be overhauled root and branch to ensure that not only the public sector finances are in order but the entire economy.”
After staying out of the news for quite some time, the trade disputes between the US and China flared up again this week. On Thursday, the US placed additional duties ranging from 30.82 percent to 135.8 percent on magazine quality paper from China. In response, China slapped duties on US poultry products.
The Home Buyer tax credits expire today, bringing to an end the largest incentive for consumers to go out and purchase a home. Some real estate companies are trying tactics to make it appear that buyers can still take advantage of the savings, but these schemes for the most part simply force the seller to take a loss and cover more costs so that the buyer will be more inclined to close the deal.
A glimmer of a solution on the horizon for Greece, along with better than expected economic data sent oil back over $85 a barrel.
The Fed left the language stating that rates would stay low for an “extended period” unchanged at the FOMC meeting this week, saying that inflation “was likely to be subdued for some time.”
The Euro continued its steady decline, leveling out at the end of the week on rumors that a solution for Greece was near at hand.
Federal prosecutors have opened an investigation into trading at Goldman Sachs. This may mean that there is a real possibility that criminal charges will soon be filed against them. The New York Post reported that Goldman Sachs would most likely settle its case with the SEC, but such a settlement would have almost no bearing on a criminal case brought about by federal prosecutors.
Friday to Friday Close
| Apr. 23rd | Apr. 30th | Net Change | |
|---|---|---|---|
| Gold | $1155.00 | $1180.00 | 25.00 + 2.16% |
| Silver | $18.22 | $18.60 | 0.38 + 2.09% |
| Platinum | $1742.00 | $1740.00 | (2.00) – 0.11% |
| Palladium | $563.00 | $553.00 | (10.00) – 1.78% |
Month End to Month End Close
| Mar. 31st | Apr. 30th | Net Change | |
|---|---|---|---|
| Gold | $1114.00 | $1180.00 | 66.00 + 5.92% |
| Silver | $17.50 | $18.60 | 1.10 + 6.29% |
| Platinum | $1635.00 | $1740.00 | 105.00 + 6.42% |
| Palladium | $478.00 | $553.00 | 75.00 + 15.69% |
Year to Date Close
| Dec. 31st | Apr. 30th | Net Change | |
|---|---|---|---|
| Gold | $1098.00 | $1180.00 | 82.00 + 7.47% |
| Silver | $16.95 | $18.60 | 1.65 + 9.73% |
| Platinum | $1470.00 | $1740.00 | 270.00 + 18.37% |
| Palladium | $407.00 | $553.00 | 146.00 + 35.87% |
Here are your Short Term Support and Resistance Levels for the upcoming week.
| Gold | Silver | |
|---|---|---|
| Support | 1160/1150/1125 | 18.40/18.00/17.50 |
| Resistance | 1185/1200/1225 | 18.80/19.00/19.50 |
| Platinum | Palladium | |
|---|---|---|
| Support | 1720/1700/1675 | 530/515/500 |
| Resistance | 1750/1775/1800 | 575/600/620 |
Volatility should be expected to continue. Even if a solution is announced for Greece this weekend, Europe and the Euro zone are far from becoming stable. Portugal, Ireland and Spain will all be expected to help fund the bailout that Greece receives, and their own debt situations are not much better than Greece’s. We issued a market alert on Wednesday indicating that precious metals prices appeared ready to explode to the upside and that still appears to be the case. The massive oil spill in the Gulf of Mexico may have far reaching impacts on the oil market, not the least of which will be the future of offshore drilling off the coast of the US. Fiat currencies are unstable, oil is unstable, the financial industry is under fire for their past and present actions with charges and lawsuits being filed right and left. In the face of so much uncertainty, one phrase keeps passing the lips of analysts and investment advisors across the world: “diversify your portfolio with precious metals.” We’ve been espousing that very idea for years as precious metals prices have moved higher and higher. If you’re waiting for prices to come down to start, or add to, your precious metals portfolio, if the upside price explosion that analysts are predicting comes to pass you’ll regret that you never had the courage to buy when prices were at relatively “cheap” levels. Remember, the key to profitability through the ownership of physical precious metals is to actually own the physical products and to hold them for the long term. Never over-extend your ability to maintain ownership of your product over the long term.
Trading Department – Precious Metals International, Ltd.
This is not a solicitation to purchase or sell.
© 2010, Precious Metals International, Ltd.
© 2012, Precious Metals International Ltd.
www.wwpmc.com
The Week In Review – April 30, 2010
Posted by Worldwide Precious Metals on Friday, April 30, 2010
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