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    JM Bullion Gold and Silver Market Update (11/29/16)

    Gold Spot Price Open: $1,194

    Gold Spot Price Close: $1,192

    Change in Gold Spot Price: -$2

    Silver Spot Price Open: $16.69

    Silver Spot Price Close: $16.62

    Change in Silver Spot Price: -$0.07

    After performing decently to begin the week, both gold and silver took a downward turn on Tuesday thanks to some better than expected 3rd quarter GDP data. When all was said and done, gold ended up conceding about 2 dollars while silver lost roughly 7 cents. Platinum ended the day down by about 5 dollars while palladium finished the day having added about 5 dollars.

    US 3rd Quarter Growth Stronger Than Expected

    Gold and silver had almost no chance to make gains on Tuesday all thanks to a 3rd quarter GDP report that came back stronger than anticipated. According to the US Department of Commerce, US 3rd quarter GDP expanded at a rate of 3.2%. Not only does this defeat early predictions which called for gains of just 2.9%, it more than doubles the 1.4% growth recorded in 2016’s second quarter. Most experts were anticipating growth of about an even 3%, so today’s data also defeated those expectations.

    If we look back a few years, this year’s 3rd quarter GDP growth was the United States’ best single-month performance since the 2nd quarter of 2014. A major contributor today’s upbeat report was domestic spending from consumers, which ticked upward by much more than expected. Import and export data was equally as impressive. Exports increased during last quarter by little more than 10%, while imports moved upward by little more than 2%. Both of these figures were better than economists were expecting.

    In total, today’s GDP data did well to add even more strength to the belief that we are but a few weeks away from a rate hike announcement delivered by the FOMC. Anytime this happens it is typically going to spell bad news for the precious metals market, and that is exactly what we saw today. If the economic data released in the coming week and a half or so is anything like that which we saw today, metals are going to have a tough time making up any of the ground that has been lost over the last few days.

    Various Other Talking Points Dominate Market

    The US Dollar has been called into attention in recent days because, after hitting a near 14-year high last week, the greenback has trekked backwards. In the early morning hours of today the greenback bounced back to some extent, but shortly thereafter was moving downward once more. This is largely due to uncertainties regarding tomorrow’s OPEC meeting. In case you have been tuning us out recently, OPEC is holding a meeting tomorrow to once more discuss what it, as an organization, can do to reduce daily output of crude oil and thus lessen the supply-glut that has been crippling oil prices for more than a year now.

    Something else to keep an eye on is a referendum in Italy that is set to take place this weekend. If the dominoes fall a certain way and Prime Minister Matteo Renzi is unseated, there will be a lot of uncertainties facing the Italian banking system that Renzi planned on helping financially. This will assuredly have some impact on the euro currency, but it is too early to say for sure what kind of impact this will be.

    Wrap-Up

    All things told, today was a nice warmup for the slew of economic data that is expected to be delivered over the coming days and weeks. What’s more, the OPEC meeting and any potential agreements that it breeds will also be called into spotlight as we head into the latter half of the week. For gold and silver, the tone set by today’s GDP data has many people thinking that the next few weeks are going to be somewhat harsh on spot values. Barring any massively disappointing pieces of economic data, metals are likely to be under what can best be described as constant pressure.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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