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    JM Bullion Weekly Market Review (10/28/16)

    Market Overview: Both gold and silver are drifting slightly lower in early trade on Friday as markets await the release of some key economic data. Although it has been drifting higher, the gold market has remained within a very tight trading range this week. The market could potentially be gearing up for a sizable move, although the direction of such a move remains unclear. The market could also potentially remain range-bound heading into the fast-approaching Presidential election, as uncertainty over not only the outcome of the election but also the economic and geopolitical policies of each candidate fuels some investor anxiety.

    Key Data Points: Investors are looking forward to the latest reading on third quarter GDP a little later this morning. Consensus estimates are looking for a reading of 2.5 percent. This release could be especially significant with the Fed likely looking to raise rates in December. A strong reading will likely bolster the case for a rate increase, while a weaker-than-expected reading could potentially fuel debate about the necessity of a hike in December.

    Investors will also pay close attention to the latest reading on Consumer Sentiment. This gauge is supposed to read 885, according to consensus estimates.

    Outside Markets: Stock index futures are pointing to a higher open this morning. Stocks, have, however, been showing some signs of weakness. The S&P 500 has been making a series of lower highs, which could potentially be indicative of a reversal.

    The dollar index is down slightly in early action, but remains firmly within a strong uptrend. The dollar index has been boosted by a faltering Great British Pound and the notion of rising rates in the U.S. The greenback is approaching its 2015 highs, and a breakout above these highs could potentially see a significant leg higher in price. The dollar has likely been a major factor in gold and silver’s lack of sustainable upside in recent trade, and further dollar strength could potentially weigh heavily on the metals.

    The Big Picture: Unfortunately for precious metals, there appears to be a number of issues working against higher prices, while there is an ongoing lack of any fresh, bullish inputs. For now, precious metals investors will likely focus on the Fed and interest rates, the currency markets and overall risk appetite. If stocks start showing further signs of weakness, gold and silver could see additional buying interest. The precious metals markets could also potentially see renewed buying interest from headline news as well, such as further worries over Deutsche Bank or further easing measures by other central banks.

    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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