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Why Did Gold and Silver Rebound on November 28?

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Gold and silver rebounded

After falling last week to multimonth lows, gold and silver recovered on November 28. On November 28, the COMEX gold futures contract for December delivery rose 1.1% and closed at $1,190.6 per ounce. The COMEX silver futures contract for December delivery closed the day at $16.58 per ounce—a gain of 0.69%.

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Weakness in the dollar supported gold and silver prices

The US dollar pulled back from 13-year high price levels on November 28. The lighter dollar supports the prices of dollar-denominated commodities such as copper, crude oil, and gold. The US dollar reached 13-year high levels in November amid expectations of an increase in spending, growth, and inflation under Donald Trump’s presidency. The higher chances of an interest rate hike in December also pushed the dollar higher. The major economic events this week supported the profit in the US dollar at the beginning of the week.

Interest rate hike views weigh on the market

Last week, gold and silver fell 2.5% and 0.93%. The hawkish comments from the Fed also dented the precious metal market sentiment and took the shine out of safe-haven assets. The Fed’s November minutes showed that most of the members said that it “could well become appropriate” to raise the interest rates “relatively soon.” It pushed the expectations of a December interest rate hike through the roof.

On November 28, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) rose 4.5%, 4.8%, 4.3%, and 4.4%, respectively. The SPDR Gold Trust ETF (GLD) rose 1.0%.

In the next part, we’ll discuss how companies in the energy, metals, and miners sector performed on November 28.

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