This was sent to me via email by a friend of mine. It is the monex precious metals review.

In the precious metals markets this week . . .

GOLD:
Monex spot gold prices opened the week at $1,087 . . . traded as high as $1,118 on Tuesday and Wednesday and as low as $1,045 on Friday . . . and the Monex AM settlement price on Friday was $1,051, down $36 for the week. Gold support is now anticipated at $1,044, then $1,020, and then $979 . . . with resistance anticipated at $1,065, then $1,093, and then $1,122.

SILVER:
Monex spot silver prices opened the week at $16.32 . . . traded as high as $16.78 on Tuesday and as low as $14.65 on Friday . . . and the Monex AM settlement price on Friday was $14.80, down $1.52 for the week. Silver support is now anticipated at $14.62, then $14.28, and then $13.94 . . . and resistance anticipated at $15.13, then $15.35, and then $15.87.

PLATINUM:
Monex spot platinum prices opened the week at $1,525 . . . traded as high as $1,585 on Wednesday and as low as $1,455 on Friday . . . and the Monex AM settlement price on Friday was $1,470, down $55 for the week. Platinum support is now anticipated at $1,455, then $1,425, and then $1,387 . . . and resistance anticipated at $1,485, then $1,520, and then $1,552.

PALLADIUM:
Monex spot palladium prices opened the week at $424 . . . traded as high as $444 on Wednesday and as low as $385 on Friday . . . and the Monex AM settlement price on Friday was $396, down $28 for the week. Palladium support is now anticipated at $385, then $355, and then $327 . . . and resistance anticipated at $397, then $410, and then $425.

QUOTES OF THE WEEK:

From Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on February 4th:

''I'm not hopeful about the years ahead. First, I see a period of deflation. This will be followed within two years by wild inflation, as all the liquidity that the Fed has created finally kicks in. The two periods of deflation and then inflation will inflict tremendous damage on American consumers and it will leave Washington battered and confused.

I continue to think in terms of trying to keep our potential losses to a minimum. I think the best and simplest strategy is to have half our liquid assets in gold and the other half in US dollars. And it's well to remember my long-held bear market thesis -- 'In a primary bear market everyone loses and the winner is the one who loses the least.' ''

. . . and from trader Dan Norcini, in a posting on Jim Sinclair's website, jsmineset.com, on February 4th:

''The psychology that is working against gold for right now is that traders are yakking about the lack of inflation and thus their reticence to chase gold higher. So far this liquidity blast from the Fed's Quantitative Easing program has not worked its way into the broader economy (yet). With banks not lending and tightened credit standards, upward pressure on prices has not been seen in a larger way. Wages are still stagnant and/or falling relieving any pressure from that source. That is the reason that the gold price is so tuned in to what the equity market is doing and why it sells off whenever the equities get clocked. The lower stock market is read by traders as a sign that the economy is not growing or expanding as quickly as the pundits would have them believe and so the upward pressure on prices across the economy fades and down goes gold. It really is that simple.''

. . . and from Tom Bortnyk, writing in The Daily Loaf blog, on February 4th:

''Thursday, the U.S. House of Representatives passed a bill to reinstate 'PAYGO,' the pay-as-you-go spending policy that requires expenditures to be financed with currently existing, rather than borrowed, funds. On the surface, this appears to be a fiscally responsible guideline; during the Clinton years, PAYGO helped control the deficit and, coupled with the economic boom and a number of other factors, lead to the budget surplus.

But dig a little deeper and you'll find that nothing about this bill address fiscal restraint. In fact, the opposite is true; underneath the smoke and mirrors is a provision to raise the debt ceiling by nearly $2 trillion. Dig deeper, and you'll uncover the troubling fact that the bill also includes exemptions for nearly 40% of all spending -- over 160 spending programs. That's right . . . it's a pay-as-you-go policy, but on almost half of all expenditures, it's all go and no pay.

It can also be assumed, based on the massive increase in the debt limit, that the Democrats fully intend to use the exemptions to increase spending. After all, they already have; following the reinstatement of PAYGO in 2007, the Democrats have ballooned the deficit from $161 billion to $1.6 trillion -- a tenfold increase. This is the fifth increase in the debt limit in the past year and a half. The debt ceiling now exceeds $14 trillion -- roughly the size of the entire U.S. Economy.

Congressman Paul Ryan (R-WI), ranking member of the budget committee, argued that the debt increase is larger than 'the entire GDP of Canada.' For the record, it also exceeds the GDP of all but the top seven economies in the world.''



This is not a recommendation to buy or sell