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Gold, Silver Fell amid Stronger US Economic Data on November 23

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Gold falls to nine-month lows

After losing strength on November 22, 2016, gold prices inched lower on November 23. At 1:45 PM EST on November 23, COMEX gold futures contracts for December delivery were trading at $1,190.45 per ounce, a fall of ~1.7%.

Silver futures contracts for December delivery fell ~1.2% to $16.43 per ounce.

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US economic data, stronger dollar weigh on gold, silver

Better-than-expected US economic data and the stronger US dollar weighed on gold and silver prices on November 23. According to the data released by the United States Census Bureau at 8:30 AM EST on November 23, durable goods orders for October rose 4.8%, better than the previous month’s value of 0.4% and the market’s expectation of 1.5%.

This improvement was followed by stronger US manufacturing PMI (purchasing managers’ index) data, which showed October’s PMI level at 53.9, higher than analysts’ expectation of 53.4. These stronger economic data have taken the shine out of safe-haven assets such as gold and silver.

Higher chances of an interest rate hike in December

Higher chances of an interest rate hike in December are also weighing on gold and silver markets. The Federal Reserve’s meeting minutes released at 2:00 PM EST on November 23 showed that most Fed members said it “could well become appropriate” to raise interest rates “relatively soon.” On November 23, the chances of an interest rate hike in December stood at 100%, according to a Fed rate monitor tool.

At 2:40 PM EST on November 23, precious metals producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell ~5.4%, ~5.0%, ~4.3%, and ~4.1%, respectively. The SPDR Gold Trust ETF (GLD) fell ~1.9%.

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