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    JM Bullion Weekly Market Review (11/25/16)

    Market Overview: The precious metals complex is mixed today in light holiday trade,
    with gold declining while silver sees a little buying. Volumes are likely to be extremely
    light today following the Thanksgiving Holiday yesterday, as most investors take
    advantage of the long weekend. Gold and silver investors are in need of some bullish
    news, but for the time being it appears that these precious metals may have a difficult
    time putting together any sustainable rally given stronger equities and a stronger U.S.
    Dollar index. A Fed interest rate hike next month now appears to be a near-certainty,
    with Fed Funds futures pricing in a 100 percent chance of a rate hike from the central
    bank. The gold and silver markets have likely fully discounted this hike already, and
    perhaps once the hike takes place these metals will find some more buying interest.

    Key Data Points: The latest reading on PMI Services Flash this morning showed a
    reading of 54.7 and signaled U.S. service sector growth holding steady.

    Outside Markets: Stocks are slightly higher in light trade today as crude oil and the
    dollar both decline. As risk appetite has remained elevated, stocks have been marching
    on to fresh all-time highs, and could have further room to run.

    Equities have been on a tear since the surprise Presidential Election victory of Donald
    Trump, as hopes for fiscal spending and tax cuts have fueled economic optimism.
    Markets may, however, be getting a little long in the tooth, and while further upside is
    possible, a pullback could potentially be seen before any significant move higher from
    current levels.

    The Dollar Index has also been a major factor for the gold and silver markets in recent
    action, and like equities, the dollar could have further room to run higher. The
    greenback is currently trading at the highest levels since the early 2000s, and further
    strength in the currency may impede any potential rallies of significance in the precious
    metals complex.

    The Big Picture: Risk appetite remains high, and stronger equities and a stronger
    dollar are taking a toll on gold and silver. As sentiment surrounding these precious
    metals becomes more and more bearish, the markets could be getting closer to finding
    a meaningful bottom. It does not appear, however, that such a bottom has been
    reached yet. Gold and silver are likely to remain on the defensive for the time being, and
    could potentially find a bottom when the Fed actually lifts rates next month.

    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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