Gold, Silver Bullion and Mining Stocks See Price Slip

APMEX

11/28/2018 1:47:53 PM

Daily Gold & Silver Market Report – 11/28/2018

• Price of Gold goes down, potentially facing new challenges.
• Fed confirms new interest rate hikes in coming weeks.
• Bitcoin sees 9 percent price increase overnight.

On Tuesday, spot prices for Gold and Silver bullion, along with mining stocks, took a visible hit. FXStreet describes this as a “sector-wide decline” for Precious Metals. Analysts wonder if this is the significant decline many have predicted or just more market volatility. The article stops short of drawing a firm conclusion, but does suggest “the earth is already shaking.” Economists observed several signals over the past few months and predict yesterday’s Gold price decline could lead to a much larger $150 drop in the near future.
Spot prices for Silver dropped, which some analysts predicted, trading at $14.18 per troy ounce at 12:50 p.m. (ET) Tuesday. Much of the loss for mining stocks came from strong production volume. Przemyslaw Radomski, the analyst who wrote the piece for FXStreet, feels although the price patters for Silver and mining stocks seem unusual, “this pattern is not fully completed.” He goes on to write, “The decline is still likely based on multiple other reasons, but let’s keep in mind that the final bearish confirmation will be when the GDX ETF confirms the breakdown below approximately $18.30 – the above-mentioned hypothetical neck level.”

Fed Again Points to December Interest Rate Hike

On Tuesday, U.S. Federal Reserve Vice Chair Richard Clarida stated interest rates will continue to gradually rise, confirming accepted predictions of another hike in December. The central bank’s plans were not completely spelled out, but Clarida did speak to controlled inflation measures, which could offer the Fed leeway to limit the pace of rate increases in early 2019. According to the Wall Street Journal, “His comments illustrated how officials are trying to keep their options open about what to do next year, when the economy may face new crosscurrents.”
Clarida pointed to strength in the U.S. economy, acknowledging the recent market numbers that pin current inflation at “somewhat less than 2%.” Gold and Silver investing have long been considered one of the best ways to hedge against inflation. Both Precious Metals are known to retain their value, even in the face of high inflation rates. The San Francisco Federal Reserve made news Monday by releasing a forecast that there is a good chance inflation goals will dip below target sometime in the near future.

Bitcoin Soars Above $4,000

Following a recent warning from the SEC regarding Bitcoin, the world’s best-known cryptocurrency, gained 9 percent overnight, reaching above the $4,000 mark. Bitcoin is now poised to reach its highest daily increase since July. SeekingAlpha reports that Nasdaq will continue to move forward with plans to list Bitcoin futures beginning in 2019. After much volatility this year, the New York exchange operator is counting on continued interest going forward.

At 2:40 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,224.90 Up $8.50
• Silver, $14.41 Up $0.21
• Platinum, $828.50 Down $6.80
• Palladium, $1,189.30 Up $37.90

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