Daily Gold & Silver Market Report – 12/01/2016

Cassie Bastien

12/1/2016 11:37:00 AM

STEALING FROM SANTA?

CFRA Research strategist Sam Stovall says President-elect Donald Trump might be “stealing from Santa”! In other words, typically December is a good month for stocks; however, the market’s Christmas came early with the November Trump rally. Stock Trader’s Almanac editor Jeff Hirsch thinks the most likely reason for typical declines in December’s first half is due to investors selling losers to offset capital-gains taxes on winners. Therefore, buying during any first-half dip usually results in a solid profit by the new year. Jani Ziedins with CrackedMarket feels news from the OPEC deal should have unleashed a flood of buying. “If the market was a coiled spring ready to explode higher, this would have triggered that move,” he writes. “Instead we hit our head on the ceiling and fell into a tailspin.” Ziedins goes on to state “we’re stuck in a market that won’t break down on bearish news” but yet it “won’t rally on bullish news”. With that being said, Ziedins isn’t ready to call the bull-market dead, but also feels because of this week’s poor price-action we aren’t ready to extend the breakout into the record highs yet.

SILVER PRICES LOWER AS THE DOLLAR REDEEMS STABILITY

As the U.S. dollar regained strength following three consecutive declines, Silver prices declined alongside other metals Wednesday. After declining more than 9 percent since the November presidential election, the grey metal is attempting its fourth-consecutive increase after a five-month low last week. Gold prices, which were also pressured Wednesday, were on their second-consecutive drop; Sam Bourgi from EconomicCalendar.com says “the February futures prices fell $4.80, or 0.4%, to $1,186.00 a troy ounce.” The dollar index rose 0.2% to 101.17 after a sharp decline against other currencies the previous season. As investors turn their attention to the U.S. jobs data, Bourgi states the “greenback will see plenty of action in the latter half of the week.” According to the CME Group’s FedWatch Tool, the certainty for a December rate hike is currently priced at well over 90 percent. Bourgi closed by stating that “[oil] prices are on track for their biggest one-day gain since April”.

PALLADIUM IMPRESSING MANY

It’s no secret much of the world has experienced change since the November 8 presidential election. Not only did most pollsters get the election wrong, but analysts also got the market’s reaction to the election wrong. Many world leaders expected Hillary Clinton to win, so the election of Donald Trump was not the result they were wanting. Options analyst Andrew Hecht wrote that, “At the end of the campaign season, it appeared that a surprise in the U.S. that mirrored the post-Brexit markets would create more fear and uncertainty for the future. However, the bearish price action in precious metals markets since election night has been a shocker to many.” Meanwhile, Palladium has bucked the recent declining Precious Metals trend and is at its highest level since June 2015.

At 12:37 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,214.80 Down $7.00
• Silver, $16.64 Up $0.01
• Platinum, $931.00 Down $1.70
• Palladium, $726.00 Down $21.40

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