This week in Gold

In the precious metals markets this week . . . GOLD: spot gold prices opened the week at $1,132 . . . traded as high as $1,153 on Friday and as low as $1,131 on Monday . . . and the AM settlement price on Friday was $1,153, up $21 for the week. Gold support is now anticipated at $1,152, then $1,142, and then $1,124 . . . with resistance anticipated at $1,160, then $1,178, and then $1,191. SILVER: spot silver prices opened the week at $17.61 . . . traded as high as $18.24 on Friday and as low as $17.60 on Monday . . . and the AM settlement price on Friday was $18.20, up $.59 for the week. Silver support is now anticipated at $18.05, then $17.92, and then $17.66 . . . and resistance anticipated at $18.24, then $18.55, and then $18.85. PLATINUM: spot platinum prices opened the week at $1,684 . . . traded as high as $1,744 on Friday and as low as $1,684 on Monday . . . and the AM settlement price on Friday was $1,742, up $58 for the week. Platinum support is now anticipated at $1,740, then $1,724, and then $1,697 . . . and resistance anticipated at $1,760, then $1,806, and then $1,835. PALLADIUM: spot palladium prices opened the week at $522 . . . traded as high as $569 on Wednesday and as low as $521 on Monday . . . and the AM settlement price on Friday was $562, up $40 for the week. Palladium support is now anticipated at $548, then $521, and then $506 . . . and resistance anticipated at $570, then $582.50, and then $600. QUOTES OF THE WEEK: From Niall Ferguson and Ted Forstmann, in an editorial on the ''Opinion'' page of The Wall Street Journal on April 23rd: ''The public today is in no mood for light-touch regulation. It knows Wall Street has become largely a giant casino creating bets whose only purpose is to create fees for itself -- with the difference that taxpayers are expected not only to bail out the casino's biggest losers but also to endure misery in the form of lost homes, lost jobs and lost savings if the casino inadvertently triggers a depression. The charges brought against Goldman Sachs by the Securities and Exchange Commission confirm this view. Whether or not there is any basis for the SEC's claim that it misled investors, the key point is that the synthetic collateralized debt obligation (CDO) at issue was nothing more than an elaborate wager on the future price of some mortgage-backed securities -- a wager with as much economic utility as a gigantic bet on a roulette wheel or a horse race. Facilitating such bets has become a huge part of the business of the world's banks. For most of the last 20 years the explosive growth of the derivatives market -- the total notional amount of derivatives outstanding in June last year was $604.6 trillion -- was immensely lucrative for bankers and those who invest in bank stocks. But it increased the instability of the global financial system. And taxpayers have have paid a heavy price since the system all but collapsed in 2008.'' . . . and from Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on April 19th: The fact is that [billionaire fund manager John] Paulsen had been searching for bubbles in the economy, and he correctly zeroed in on real estate and specifically home mortgages. But Paulsen never sold his toxic packages to investors, Goldman did. Which is why the SEC has focused its fraud accusations on Goldman and left Paulsen alone. Paulsen & Co. earned $15 billion betting against the housing market in 2007. Paulsen, 54 years old, personally made nearly $4 billion that year. Today Paulsen's hedge fund has $32 billion in assets, making it one the world's largest hedge funds. Of interest is that Paulsen's most recent big investment is in gold and gold stocks and exchange traded funds tied to gold. Russell Comment -- I ask myself, what is Paulsen thinking as he takes a large position in gold and gold shares? Paulsen must be thinking that the dollar is in a bubble. Furthermore the ultimate 'safe bet' against the dollar is gold. Normally, the bet against the dollar would be to load up on the euro, but the Greek fiasco eliminates a big bet on the euro. The smartest people I know or read about don't have definite opinions regarding whether we are heading into inflation or deflation. My own guess (and it's just a guess) is that the US is heading into deflation. Today, the pressure is on to cut back on bailouts and stimuli, both of which are adding to the nation's debt. Bernanke is facing his ultimate problem, should he continue to finance all the administration's spending or should he publicly call a halt? '' . . . and from John Browne, a former member of Britain's Parliament, in an editorial entitled, ''Reports of Our Recovery Are Greatly Exaggerated,'' posted on 321gold.com on April 23rd: ''Fed Chairman Ben Bernanke says the economy is stable. Many people believe him. But, at the same time as he advertises economic recovery, Bernanke tells us that short-term Fed rates will be kept at zero 'for an extended period.' Why would he risk runaway inflation by holding interest rates down if the economy were truly rebounding? Furthermore, despite creating and spending these trillions of new dollars, the Fed continues to resist heavy Congressional pressure to show the public where the money has gone. Rumor has it that some of the money went to institutions outside America. In today's world, can we trust the central bank?''

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