Gold suffered some profit taking at the opening of last week both Monday and Tuesday before recovering some of its losses in the later part of the week.  Gold started the week at $2,391.87 and fell sharply to the weekly low by Tuesday before rallying to a respectable number of $2,338.02.  All eyes were turning to the Federal Reserve Meeting this week which caused layered decisions on buying and selling the Precious Metals Market.  For instance, bad inflation news in normal times would be bullish for Gold and bad for the USDollar.  But the opposite is resulting as a stubborn and lingering inflationary period makes speculators believe that the Federal Reserve will hold off on cutting rates, so everyone is in a state of confusion.  The primary opinion of banks, economists, and market analysts is the one that should be remembered.  The consensus is that we are in the early stages of a secular bull market in commodities.  Historically, commodities are led by the King, GOLD.


It appears the danger zone for short sellers of Silver is about $29.00.  Traders used the negative momentum of Gold to sell off 5% of Silver’s recent gains.  Opening trading on Monday at $28.68 the little sister to Gold lost $1.46 to close at $27.22.  There were no significant efforts to recover the spot price later in the week as Gold did.  The spot price ended the week just 31 cents above its weekly low.  The historic “coat tail” relationship between Gold and Silver will stop significant carnage while acting as stop loss.  Silver is woefully undervalued and pull back of this significance should be seen as a buying opportunity. 


Platinum And Palladium

Platinum stumbled out of the gate on Monday rising one dollar to $936.33 before heading to a low of $903.55 and rallying on Friday to a close of $918.11.  Palladium took a little harder hit, losing almost 7% on the week.  Palladium opened at $1,031.32 and closed at $961.21.  Both metals are stuck in a tight trading range for the foreseeable future hovering just over their production costs, and sadly seeking any help the Global Economy could throw their way in the form of manufacturing demand. 


As mentioned before, consolidations and corrections are healthy and necessary for any type of market that shows the strength that Precious Metals has exhibited over the last six months.  Gold and Silver will be in higher demand as de-dollarization continues around the world.  There are wars or rumors of wars on all four corners of the globe.  The war that will affect Americans the most, is the imminent upcoming economic war led by China and Russia as they seek to de-throne the USDollar from its World Reserve Currency status.  This cannot and will not happen overnight.  But it will happen gradually and relentlessly grinding away at every American's way of life.  During this transition, Gold and Silver will be seen at heights that will boggle the mind today.   All Global Empires eventually fail.  The American Empire is no exception as we see the cracks around us getting larger.  There is never a bad time to buy Gold and Silver.  But some times are better than others.    



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Doug Pullen, President of GMR Gold Companies

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