Daily Gold & Silver Market Report – 11/22/2016

APMEX

11/22/2016 9:18:00 AM

NEVER A DULL DAY WITH SILVER

It has been a busy year for the Silver market, it rallied from $13.60 in December 2015 all the way up to highs of $21.25 in the wake of the Brexit shocker in late June and early July. Following the surprising results from the recent U.S. election in early November, Silver is recovering back to the $19 per ounce level with time. However, as the dollar also rallied and bond prices lowered, Precious Metal prices also moved lower which in return, is a sign that interest rates are heading higher in the coming months. Andrew Hecht says that “Silver fell to $17.17 on November 11th and to $16.43 by the end of last week.” Hecht also stated that “Open interest, the total number of open long and short positions in the futures market declined to 173,552 contracts, the lowest level since April.” (Seeking Alpha) The big question here is what is going to happen to the market in late January when the new President D. Trump takes office?

THE YELLOW METAL

“The yellow metal was undercut by dollar strength and growing expectations that the Federal Reserve won't only announce an interest-rate increase at its meeting in December but could also signal a quicker pace of rate increases next year,” said Rachel Koning-Beals from MarketWatch. After a nine-month low, spot Gold prices logged a modest rebound on Monday. “Bets on a steeper Fed rate hike path after the U.S. presidential election have undermined demand for anti-fiat and non-interest-bearing assets,” including Gold, said Ilya Spivak, currency analyst with Daily FX. “A lull in top-tier news flow may allow for a corrective retracement in the week ahead, but prices will probably remain highly sensitive to headline risk as the [President-elect Donald] Trump cabinet takes shape.” Gold has largely slumped since Election Day and the surprise presidential election win for Donald Trump, after which investors turned, albeit cautiously, to riskier investments.

MARKETS CLOSE FOR BLACK FRIDAY

Traders have a lot to be thankful for this holiday week as stocks near a record high. Historically speaking, the day after Thanksgiving (also known by most as Black Friday), stock-trading volume is typically half of its level from a standard trading session. Joseph Adinolfi from MarketWatch said that “the New York Stock Exchange and the Nasdaq will close at 1 p.m. Eastern on Friday, Nov. 25, while the Securities Industry and Financial Markets Association recommends a 2 p.m. Eastern closure for bond markets. Sifma also recommends that markets close on Thursday.” Also, there’s no U.S. floor trading for metals and energy futures on Comex and the New York Mercantile Exchange on Thanksgiving Day. Futures exchange operator CME Group mandates an early close of 1:45 p.m. EST for its energy and metals trading businesses.

At 10:18 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,214.80 Up $0.00
• Silver, $16.64 Up $0.12
• Platinum, $931.00 Up $2.90
• Palladium, $726.00 Up $18.00

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.