uploads///Gold

Why Were Gold and Silver Weaker on November 7?

By

Updated

Gold and silver were weaker on November 7

After rising for three consecutive trading weeks, gold and silver were weaker on November 7. At 1:05 PM EST on November 7, the COMEX gold futures contract for December delivery was trading at $1,282.05 per ounce—a fall of ~1.7%. The silver futures contract for December delivery fell ~1.1% to $18.17 per ounce.

Article continues below advertisement

Safe-haven assets lost their shine on November 7

Safe-haven assets lost their shine on November 7 as the FBI decided not to charge Hilary Clinton over emails. It made the market soar and took the demand out of safe-haven assets. It also helped subside the uncertainty in the market about the presidential election. Last week, the uncertainty about the outcome of the presidential election helped gold rise. The US dollar moved higher on November 7. The firmer dollar weighs on dollar-denominated commodities such as copper, gold, and silver. Gold and silver started the day on a weaker note and moved lower as the day progressed. Read Copper Is Stable, Gold and Silver Are Weak Early on November 7 to learn how metals traded in the early hours on November 7.

More chances of an interest rate hike in December

The increased chances of an interest rate hike in December also weighed on gold and silver prices. As of November 7, the chance of an interest rate hike in December stands at 76.3%. Better-than-expected US job growth in October along with an increase in wages improved the chances of an interest rate hike in December. At 2:10 PM EST on November 7, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell ~5.5%, ~4.2%, ~2.6%, and ~1.2%, respectively. The SPDR Gold Trust ETF (GLD) fell ~1.8%.

Advertisement

More From Market Realist