Gold and silver were stable on November 15
After falling for six consecutive trading days, gold prices were stable on November 15. On November 15, the COMEX gold futures contract for December delivery closed at $1,226.90 per ounce—a gain of ~0.28%. The silver futures contract for December delivery rose 0.84% to $17.08 per ounce.
Gold rose for the first time in seven sessions
Gold has been weaker amid improved market sentiment after Donald Trump’s victory in the US presidential election. The stronger dollar and interest rate hike factor also weighed on gold and silver prices. Gold started the week on a weaker note by falling to more than five-month low price levels on November 14. The strong Treasury yields and firmer US dollar pushed the prices to multi-month low levels. The US dollar gained for six consecutive trading days and reached 11-month high price levels. The US ten-year Treasury yields rose to 2.3%—their highest level since December 2015. Gold and silver started the day on a stable note and maintained stability throughout the day. However, the prices started to recover on November 15 as momentum in the US dollar calmed and the increase in Treasury yields paused.
Chances of a December interest rate hike is at 90%
Higher expectations of an interest rate hike in December weighed on gold prices. Eric S. Rosengren, the Boston Fed president, commented that an interest rate hike in the December FOMC (Federal Open Market Committee) meeting is “plausible.” As of November 15, the chances of an interest rate hike in the December FOMC meeting is at 90%. On November 15, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) rose 6.4%, 4.0%, 7.2%, and 4.3%, respectively. The SPDR Gold Trust ETF (GLD) rose 0.84%.