Gold Spot Price Open: $1,210
Gold Spot Price Close: $1,216
Change in Gold Spot Price: +$6
Silver Spot Price Open: $16.61
Silver Spot Price Close: $16.56
Change in Silver Spot Price: -$0.05
Precious metals are experiencing mixed results on Monday thanks to the USD backing off a bit. When all was said and done, gold ended up adding about 6 dollars while silver fell by roughly 5 cents. Platinum and palladium both gained on the day, but platinum was the bigger gainer of the two, having added more than 10 dollars.
Dollar Loses Some of Its Momentum
The big news of the day was the fact that the USD opened up the week having lost much of the momentum gained since Donald Trump’s presidential election victory was announced. Part of the reason the greenback has cooled off is due to the fact that investors have simply moved on and are concerning themselves with other matters. Another reason lies in the fact that, as they are released and digested by the public, Donald Trump’s fiscal policies seem to be perceived as the source of potential inflation.
While the news in the US is of nothing other than falling precious metals spot values, in India, gold premiums rose to the highest level they have been at in more than 2 years. Though these fears are still developing, the recent move to pull higher denominated bills out of circulation has many people thinking that the amount of gold imported into the country will be slashed in the near future. For this reason, demand for the metal in India has been strong and will more than likely remain that way. Still, demand from India alone is not going to be enough to drive up spot values significantly or for any extended period of time.
Outside Markets Slightly Bullish, Push Spot Values
Apart from the US Dollar, other outside markets also worked in precious metals’ favor to begin the week. Before going any further, it must be said that despite outside markets pushing metals higher, the belief that interest rates will be risen by next month is something that is keeping spot values subdued.
Crude oil spot values are giving some support to precious metals as they are moving higher to begin the week. As we have heard about one hundred times in the past, the marketplace is once again considering OPEC’s ability to cut the collective daily production of crude oil in order to soften the impact of the ongoing supply glut. The oil cartel is having a meeting on the last day of November so it will be interesting to see if any policy changes come as a result of the meeting.
Something else we will be keeping an eye on is the development and possible implementation of a free trade agreement covering most of Asia. Over the weekend, China’s president Xi Jinping came out in support of the potential agreement. If enacted, it would possibly mean that China and other Asian countries might begin exporting more raw commodities such as oil and other fossil fuels. There hasn’t been much of a reaction to China’s support of a free trade agreement, but that is likely because the agreement is a long way away from being put into place.
Wrap-Up
All things considered, Monday was a lackluster day that did little in the way of providing us with anything new to talk about. The US Dollar did struggle a little bit and that was something worth mentioning, but it was also one of the only things worth mentioning. As we head further into the week, I do not envision there will be much more in the way of markets-moving economic data released. The Thanksgiving Day holiday is taking place in North America this Thursday, so it only follows that many traders will be away from the markets in order to spend time with family and friends.
