Daily Gold & Silver Market Report – 12/06/2016

Cassie Bastien

12/6/2016 9:54:00 AM

IS DOW STRUGGLING TO STAY ON TOP?

With the Dow Jones industrial average fighting to stay afloat just one day after closing at an all-time high, U.S. stock futures are struggling for direction Tuesday. Investors are now putting their attention toward the upcoming factory orders, productivity data and the slump in oil prices. Sara Sjolin with MarketWatch said Dow futures are attempting to break into uncharted territory. With the post-election rally still in full effect, the benchmark Monday closed at a record 19,216.24, marking the 19^th all-time high for the index in 2016. “The resilience in financial markets to be able to absorb and adjust to surprises this year has been quite surprising in a lot of respects, having largely put the unexpected Brexit vote and [President-elect Donald] Trump victory behind them, with the Dow once again putting in yet another record high yesterday,” CMC Markets Chief Market Analyst Michael Hewson said in a note. Closing with some economic data, Sjolin said, “Futures for the S&P 500 index flattened out at 2,204, putting it within touching distance of a record high. The benchmark on Monday closed 0.4% off from a record close. Futures for the Nasdaq-100 index gained 3.50 points, or 0.1%, to 4,784 on Tuesday.”

SILVER EXPECTED TO REBOUND IN 2017

Pete Krauth, a Resource Specialist with Money Morning, says although Silver is mainly “known as more volatile when compared to Gold, there are times when the opposite is true.” Krauth believes that Silver has been facing a dual headwind with the rallying U.S. dollar and a “propped-up stock market.” Along with many others, Money Morning feels that Silver has a dual mandate, as both a safe-haven investment and an industrial metal, which gives the Silver price a less overall downside than Gold. Krauth feels that even in the near and medium terms, Silver is poised to outperform Gold. He continued by stating, “I think we could see continued pressure on Silver as we approach the upcoming [U.S. Federal Reserve] meeting and rate hike decision. But after that, we could get a "sell the rumor, buy the news" reaction and see Silver rally.” Some think Silver prices may bottom out soon followed by an increase that could show up in Q1.

10-MONTH LOW FOR GOLD

Investing.com said Gold prices fell to lows of $1,157.00 per ounce Monday, a low not seen since February 5, and prices fell even lower early Tuesday morning. According to Investing.com's Fed Rate Monitor Tool, 100 percent of traders expect an interest rate increase to be announced at the Fed’s December 13-14 meeting. The report stated, “Gold slumped almost 8 percent as U.S. bond yields climbed on expectations of higher fiscal spending and a faster pace of monetary tightening under the Trump administration.” The dollar was steady against a basket of six other major currencies, with the U.S. dollar index at 100.13, near Monday’s low of 99.84. Of the other Precious Metals, Silver for March delivery was at $16.88 per ounce, while Palladium added 0.39 percent up to $749.50 per ounce.

At 10:54 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,214.80 Down $2.30
• Silver, $16.64 Up $0.03
• Platinum, $931.00 Up $11.90
• Palladium, $726.00 Down $2.20

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