Physical Gold Hits 4-Week Lows

Cassie Bastien

12/4/2017 10:08:00 AM

Daily Gold & Silver Market Report – 12/04/2017

Reports show Gold prices fell early Monday, quickly reaching four-week lows as a result of a strengthening U.S. dollar following a recently approved tax overhaul and the market looking ahead to the December Federal Reserve meeting. NASDAQ Reporter Pratima Desai said, “The U.S. Senate narrowly approved a tax reform bill on Saturday, moving U.S. President Donald Trump a big step closer to his goal of slashing taxes for businesses and the rich while offering everyday Americans a mixed bag of changes.” With that, Quantitative Commodity Research consultant Peter Fertig said, "Prospects for large U.S. tax cuts are a negative for Gold ...What the Fed does will be very important." 

• Platinum was 0.8 percent lower an ounce and Palladium lost 0.3 percent (Reuters.com).

Prices of Silver Show Positivity in Markets

Because Silver is both a monetary metal and an industrial metal, SilverSeek says investors can look to positive years ahead as the gray metal’s fundamentals will thrive due to strong demand in major growth areas. The report shows more than  50 percent of Silver’s annual demand comes from industry, which is set to continue to grow as industries such as self-driving cars, green energy and health care drive demand for Silver prices. Furthermore, SilverSeek.com says we should also remember physical Silver’s importance when it comes to its role as a monetary Precious Metal; “Government and central bank policies will continue to increase budget deficits and drive inflation which is positive for both Gold and Silver.”

Dow to Hit 25,000 by End of Week

If 24,000 wasn’t enough of a milestone, the Dow Jones industrial average is expected to reach 25,000 by the end of week 49. The Wharton School Finance Professor Jeremy Siegel told CNBC, following last week’s milestone, the blue chips are poised to take out 25,000 in a matter of days, thanks mainly to the passage of Trump’s tax reform package. Siegel says the corporate tax cut  “could boost earnings by 8 percent or so, and that’s a positive for stocks.” Beyond the full valuations, Seigel said political uncertainty and the Fed’s monetary policy could wake slumbering volatility into 2018, raising the value of safe-haven assets such as Gold and Silver (MarketWatch.com).

At 11:08 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,277.70  Down $4.30
• Silver, $16.35  Down $0.09
• Platinum, $930.30  Down $11.30
• Palladium, $1,008.90 Down $16.40

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