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    JM Bullion Gold and Silver Market Update (11/25/16)

    Gold Spot Price Open: $1,186

    Gold Spot Price Close: $1,186

    Change in Gold Spot Price: NO CHANGE

    Silver Spot Price Open: $16.40

    Silver Spot Price Close: $16.51

    Change in Silver Spot Price: +$0.11

    Precious metals managed to make some small gains on Friday as some Americans returned from the Thanksgiving Day holiday. When all was said and done, gold gained initially before finishing the day even while silver added more than 10 cents. Platinum and palladium finished the day mixed, with platinum losing a little more than 5 dollars while palladium gained a few more than 10.

    Bearish Market Weighs on Metals

    Precious metals might have been able to finish the day having made gains, however the gains that were recorded were nothing to write home about. What’s more, before gold and silver were able to finish the day with gains, gold was hovering near a 10-month low and continuing to suffer at the hands of a more bearish market in the wake of early November’s presidential election result. Since Donald Trump emerged victorious, investors have been displaying a more risk-on attitude for a host of different reasons.

    Also sinking gold and silver was the fact that interest rate hikes are still expected to be announced within 30 days. Right now, there are few people who think that the outcome of December’s FOMC meeting will be anything other than a rate hike announcement. This is something that does not lend itself to precious metals and is actively limiting any interest in the safe-haven qualities of gold and silver. Hurting metals even more is the growing belief that rate hikes will happen gradually during 2017. So, in addition to the December rate hike announcement, most investors are anticipating that further rate hikes will be announced as 2017 plays out.

    Jobless Claims Rise, Slightly

    After last week brought about one of the best weekly unemployment claims reports we have seen in over a decade, it makes sense that this week saw initial claims for unemployment benefits rise by a little bit. Despite the seasonally-adjusted average number of claims coming in at 235,000 last week, this week saw that same figure just marginally eclipse the 250,000 mark. While a more than 15,000 rise in first-time unemployment claims may seem like a lot, we are still sitting at all-time historic lows as far as jobless claims are concerned.

    Something significant that came with this week’s jobless claims data was the fact that we have now gone 90 consecutive weeks without the seasonally-adjusted average rising above the 300,000 mark. This is the longest such streak on record and one that seems very likely to continue through the holiday season. For gold and silver, all of this upbeat employment data is really doing spot values no favors at all. Once the holiday season is over, however, and retailers begin laying off seasonal workers, it will be interesting to see if the sub-300,000 streak can be sustained.

    OPEC Meeting Eyed

    Next week is going to be an intriguing one for crude oil as OPEC is gearing up to hold a policy meeting of sorts. As has been the case a few times in the past, OPEC leaders are meeting in order to attempt to hammer out a deal that would see all oil-producing countries limit their daily production output in order to reduce a supply-glut that has been hanging around for the better part of the year. We have seen meetings like this come and go with no tangible outcome in the past, so very few people are holding their breath this time around. Still, the meeting is an important one and will be closely eyed by the market.

    Wrap-Up

    All things considered, Friday was more quiet than anything seeing as many Americans were still in holiday mode. By the time markets open up on Monday, we will be back into the swing of things. Still, as it has been for a few weeks, all eyes continue to remain glued to the December FOMC meeting and its potential outcomes. Apart from that, the OPEC meeting will also be called into the spotlight and has the potential to push precious metals spot values one direction or another.

    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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