Gold Price Gains Are Limited

Wayne Lin

11/6/2017 2:44:23 PM

Daily Gold & Silver Market Report – 11/06/2017

A drop in bond yields and a steadier U.S. dollar caused Gold prices to slowly make their way above $1,270 an ounce. However, prices were limited as many buyers await word from the December Federal Reserve meeting, where interest rates are expected to be raised for the third and final time of 2017. Meanwhile, Saxo Bank Head of Commodity Research Ole Hansen said, “With Trump in Asia we could see North Korea talk heat up at any point. The Japanese yen was particularly weak overnight before consolidating and that is probably the key right now given the supportive turnaround seen in bonds during the past week.” Over recent weeks, we have watched the price of Gold pull back further and further. In fact, NASDAQ and Reuters Reporter Jan Harvey said Gold prices have dropped 2.5 percent since its high in mid-October. Among other Precious Metals, many investors have been keeping an eye on Palladium steadily hanging above $1,000 an ounce.  

Technology Demand Sends Silver Prices Higher

Although Silver is a Precious Metal, don’t let it fool you. Silver is also an industrial metal used in cars, cell phones, tablets, military equipment, dentistry and much more. A report from BBC Future Reporter Bianca Nogrady says an iPhone has roughly 0.34 grams of Silver, among other metals. Analysts predict more than 1.882 billion smartphones will be shipped in 2017, with nearly 1.926 billion in 2018 and 1.932 billion in 2019. Assuming each phone uses approximately 0.3 grams of Silver, that is 60.74 million ounces of Silver needed for smartphones alone! Lombardi Reporter Moe Zulfiqar says, “It doesn’t look like smartphone use is ending anytime soon. A lot more smartphones (and therefore, Silver) could be needed in the future. This could cause Silver prices to soar.” Knowing smartphones are not the only thing utilizing the gray metal, Zulfiqar says now is the time to buy while the price of Silver is down. “I truly believe that patient investors could reap massive rewards with Silver.”

At 3:43 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,284.40 Up $13.20
• Silver, $17.35 Up $0.43
• Platinum, $938.40 Up $15.50
• Palladium, $1,004.00 Up $6.50

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