In What Direction Are Precious Metals Headed?
Among the four precious metals, silver was the only one that rose on Friday, December 8, 2017. Silver futures for February expiration rose 0.22%.
Gold prices dropped to their lowest since May on Thursday, December 7. Gold futures for January expiration fell 1% for the day and ended at $1,251.4 an ounce.
All four precious metals have seen downward price movements over the past five trailing days. Gold, silver, platinum, and palladium have fallen 1.5%, 3.7%, 4.1%, and 0.83%, respectively.
Often, gold, silver, platinum, and palladium react to the overall risk in the market.
Gold futures for January expiration were 0.37% lower for the day and closed at $1,275.50 per ounce.
All four precious metals saw a down day on Monday, December 4, 2017, after the US dollar, in which the four metals are priced, rose $0.39%, propelled by the Senate passing its tax reform bill.
Investors have their eyes set on the interest rates. A rise in the interest rates causes the demand for precious metals to fall.
The US dollar has fallen almost 9.1% on a YTD basis. The iShares Gold Trust (IAU) and the iShares Silver Trust (SLV) have risen 11% and 2.8%, respectively.
Besides the rate movements, investors are also watching the upcoming US tax plan. It will have a significant impact on the US dollar.
Precious metal market participants will be closely watching the economic numbers that come out of the US, especially those that give an indication of the country’s inflation level.
All the four precious metals rose on Monday, November 27. Gold futures for December expiration were up 0.55% to close at $1,294.4 an ounce.
The possible interest rate hike is taking a lot of market participants’ attention. Many policymakers are also focusing on inflation numbers.
Market participants were eyeing the Fed’s meeting minutes that came out on Wednesday, November 22, 2017. Precious metals have a negative relationship to interest rates.
Precious metals have been closely associated with the movement of the US dollar over the last few months.
The US stock markets were closed on Thursday, November 23, 2017, for Thanksgiving, and the next day (Black Friday) was quite slow for precious metals. Gold played in a narrow range that day.
The gold-platinum ratio was ~1.4 on November 22, 2017.
Precious metals rose on Tuesday after their impactful retreat on Monday. The market was eagerly waiting for the Federal Reserve minutes due on Wednesday.
After a substantial slump on Monday, gold futures for December delivery rose 0.5% on Tuesday and closed at $1,281.7 per ounce.
As December approaches, discussion of a potential interest rate hike is growing. A hike is of particular concern to market participants because it could affect equities, currencies, and commodities. A higher interest…
All four precious metals saw a down day on Monday, November 20. Gold fell 1.6% to $1,275.30 per ounce, after touching a one-month high on Friday, November 17. The fall in…