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    JM Bullion Gold and Silver Market Update (11/10/16)

    Gold Spot Price Open: $1,276

    Gold Spot Price Close: $1,261

    Change in Gold Spot Price: -$15

    Silver Spot Price Open: $18.48

    Silver Spot Price Close: $18.59

    Change in Silver Spot Price: +$0.11

    Precious metals finished the day on Thursday mixed as talk of the recently completed election persists. When all was said and done, gold lost 15 dollars while silver gained around 11 cents or so. Platinum and palladium headed in entirely different directions from the time markets opened and platinum finished the day down by more than 25 dollars while palladium ended up gaining almost 15.

    Rate Hike Still on the Table

    Even though you thought we might have escaped it, this week will not conclude without at least some mention of the future of interest rates in the United States. This persistent theme is not going anywhere anytime soon, and will actually be called into focus more than ever as the month of December rapidly approaches. On Thursday, the market was greeted with commentary from the ever-vocal president of the St. Louis Federal Reserve bank, James Bullard.

    Despite not even mentioning the results of the election, Bullard maintained that December is the right time to give base interest rates in the US a long-awaited boost. The only mention of the changing of powers in Washington was when Bullard said, plainly, that monetary policy would need to be adjusted per the “regime” in charge.

    With Trump now the president-elect of this country, there are once again doubters out there who feel as though interest rate hikes may be put off yet again. Unfortunately, if rate hikes are not acted upon in December, there is no way to say, with any amount of certainty, when they might be raised. After all, conservatives would like to see things where they are at or possibly even lower, and with Trump in charge rate hikes do not seem a very likely course of action. Still, there is a lot of time between now and the December meeting of the FOMC, so we will just have to wait and see what happens over the course of the next 4-6 weeks.

    Outside Markets Calm as Trump Fears Fade

    In the first moments after the United States and world began coming to grips with the fact that Donald Trump was, in fact, going to win the election, stock markets as well as the US Dollar took what can best be described as a nosedive. Then, in the early morning hours of Wednesday morning, Trump delivered a somber, subdued victory speech that took everyone by surprise. Since then, the Trump radio waves have been mostly quiet. While it may seem difficult to believe, that speech coupled with the subsequent calm from the Trump camp has gone a long way in bringing markets back to stabilization. US stock indexes on Thursday were mixed, but mostly up, while the USD Index was up against all major rivals. This did not do precious metals any favors.

    In other news from the US, and sticking with news that does metals no favors, weekly jobless claims from a week ago totaled less than what most people had forecast. Versus estimates of a seasonally-adjusted average of 260,000 claims for unemployment benefits, the Labor Department’s data showed that the new seasonally-adjusted average sits at 254,000. If you can recall, this means the total number of claims dropped by more than 10,000 week over week. Markets did not really react to this news simply because the strength of the current US employment situation is something that people know fully by this point.

    Wrap-Up

    All told, Thursday was yet another day of across the board speculation with regard to what a Trump presidency really means for different markets and different investors. There is still a lot of unanswered questions and it is likely they will remain unanswered for some time now. With that being said, however, most investors are still confident that December rate hikes will go forward as planned, and that is something that continues to weigh on spot values.

    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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