Hello and welcome to our market week preview, where we take a look at the economic data, market news, and headlines likely to have the biggest impact on pricing and market momentum for gold, silver, and platinum, as well as key correlated assets.

Gold Market Update

Gold prices have made a positive start to November, rebounding from the metal’s steepest monthly sell-off since the Global Financial Crisis, which saw prices slip as far as $3,875/oz. Boosted, at least in part, by global markets finding a more tangible sense of clarity (not what typically improves gold bids, to be fair) following last week’s US midterm election results, gold has continued rising on Monday morning to a spot price just below $4,130.

Attributing gold’s rally directly to the election outcome is a bit of an oversimplification, of course, as the true dynamic appears to be easing pressure from US bond yields and falling oil prices. These developments, themselves a reaction to perceived near-term stability following the midterms, have provided more headroom for the yellow metal.

On the other hand, the US labor market continues to deliver healthy metrics in terms of headline unemployment and job growth, so the case for another interest rate hike at the final Fed meeting of the year is strengthening. Fed Funds Futures bets currently put those odds at roughly 80%, and this expectation will keep a lid on any real effort from the gold market to break out. We may see that ceiling lowered this week, depending on how October CPI numbers come in on Tuesday.

Silver Market Update

Silver prices weathered an even more brutal October than gold, falling over 18% compared to gold’s 7% decline. At one point, the gold-silver ratio had widened to nearly 80.0. This coincided with the white metal breaking below the major psychological level of $50/oz on its way to an annual low of $48.60.

Like gold, silver has been recovering since last week’s US elections and is now trading back above $52.35 in spot markets. We expect the next move for silver, either a continuation of this rally or a pullback, to also hinge on this week’s inflation data. Should the CPI numbers more firmly reinforce expectations for a December rate hike, we will keep an eye out for a lower floor in silver, given that solar panel manufacturers are cutting back on demand for the metal.

Platinum Market Update

Platinum has followed a similar trading pattern to its precious metal counterparts in recent weeks. Looking ahead, however, it now appears poised to move based more on technical analysis of price trends than on a clear fundamental response to macroeconomic data or news flow.

As of Monday morning, platinum has rallied back to a bid-ask level just above $1,550/oz. If the metal can maintain this level and close above it today, technical charting suggests the possibility of another move higher toward the $1,700 range.

US Macro Data to Watch

Tuesday, November 10 at 8:30am ET // Consumer Price Index (Oct)

(core CPI) consensus est.: +0.2% MoM // prev.: +0.3%

(headline CPI) consensus est.: +0.3% MoM // prev.: +0.6%

And that’s how the precious metals basket is performing to begin the week. As always, we wish you all the best of luck in your markets in the coming days, and we’ll look forward to seeing you back here next week for another metals market preview.