Daily Gold & Silver Market Report – 11/21/2016
APMEX
11/21/2016 10:32:00 AM
OIL PRICES STENGTHEN AS THE DOLLAR WEAKENS
Nigel Stephenson says that “Oil prices rose to three-week highs on Monday, supported by a weak dollar and helping to nudge a gauge of inflation expectations in the euro zone to its highest since January.” In addition to oil, gas and other commodity-related shares increased which then increased European stock markets. The oil's rise comes as markets have been bracing for higher inflation if U.S. President-elect Donald Trump implements some of the said tax cuts and infrastructure spending plans he mentioned in his campaign. Speaking of which, since Trump’s election, the prospect of higher inflation has helped drive global bond yields and the dollar.
Site: http://www.reuters.com/article/us-global-markets-idUSKBN13G01L?il=0
COULD TRUMPS TEAM HELP OR HURT THE STOCK MARKET?
Word on the street is that Mitt Romney is a top contender to serve under President-elect Donald Trump as Secretary of State. So what’s that mean for the stock market? According to Jim Cramer from CNBC’s Mad Money, “handing that title over to Mr. 47% could give the stock market a nice pop.” In other words, Trump might be savvier about foreign policy than most might think. Graham Summers, chief market strategist at Phoenix Capital Research, says that investors shouldn’t worry so much about the “fake news” as much as the “fake economy”. Considering Thanksgiving will cut things short, there’s still plenty of time and data for much change in the coming days.
THE FUTURE OF GOLD, OIL, AND INDUSTRIAL COMMODITIES
As the shock of the new President-elect Trump wears off, the significance of Gold, oil, and industrial commodities’ emerges. In accordance with Trump winning the election, Gold prices were expected to rise; however, the opposite has happened and the price of Gold has in fact fallen by more than 5% since the announcement of the election. Frank Holmes, CEO and CIO at U.S. Global Investors, didn’t think Gold was going to collapse but rather said “It wasn’t about who won the election, as much as it was about the winner’s “economic policies that [would] drive the price of Gold”. Holmes also believes that if Trump follows through on his proposal of sanctions on China, which would lead to substantial consumer inflation in the U.S. With that being said, higher inflation should then keep real interest rates low which in return supports Gold prices. Holmes also said that in so short term, Gold will probably “be challenged”. As far as next year, Trump’s policies will likely prove inflationary. So what does that mean for Gold? Holmes thinks that if interest rates decrease, Gold will “rebound to $1,300” an ounce.
At 11:32 A.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,214.80 Up $3.30
- Silver, $16.64 Down $0.07
- Platinum, $931.00 Up $8.00
- Palladium, $726.00 Down $4.80
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
