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This week’s market activity for precious metals and commodities continues to be influenced by the uncertainty of December interest rate hikes for both the U.S. and U.K. central banks. Bearish pressure, especially on gold, is attributed to increased expectations that the U.S. Fed will vote to raise rates, especially given that last week’s employment report for October came in significantly stronger than expected.
Gold, silver, and platinum are all performing near the lowest levels of their respective 52-week price ranges, which may offer attractive opportunities to enhance your portfolio. Here are details for the Weekly Market Report for Precious Metals.
Gold prices are holding nearly steady around the $1085 range, occasionally dropping closer to its 52-week low of $1072. The market saw some safe-haven buying activity as a response to the shocking terrorist attacks in Paris over the weekend.
Selling pressure has now eased slightly with gold futures picking up against short covering, bargain hunting, and the recent bump in demand from India. The increased gold demand from India, the second largest gold consumer worldwide, coincides with its festival season, traditionally a time when Indian citizens buy gold.
Rob McEwen, owner of McEwen Mining, a mid-tier gold and silver producer, recognizes the current bargain-hunting environment that is forming in the gold market. He said in a report for Kitco News:
“People should be putting a little money into gold, think of it as 80-90 percent off; you can turn gold into cash in two days, it is value.”
After dropping below $14 the previous week, the price of silver appears to have reached a solid position above that mark. With silver expected to open this week slightly above $14, this creates an opportunity to pick up silver at attractive prices.
Looking ahead for silver, analysts point to the fact that silver production has lagged behind demand for the past 10-15 years. Market pricing has not fully reflected this situation because the gradual sell-off of major silver stockpiles has been influencing prices during this extended time-frame.
As these major stockpiles approach depletion and worldwide demand for silver continues to grow, savvy investors are looking to increase their holdings of silver at today’s prices in anticipation of sustained price growth due to this unfolding supply-and-demand dynamic.
The market price of platinum was lower this week, closing Monday at $863, after hitting a 7-year low. Producers have been hit hard by these diminished prices. Additionally, mine labor strikes and higher operating costs are causing widespread disruption in various parts of the world, most notably at South Africa’s Lonmin, the world’s third largest platinum producer, which was in the news again last week.
Platinum prices have been under pressure for an extended time. Some experts predict, however, that near-term selling may be close to exhaustion. In order to turn around this depressed pricing situation for platinum, cuts in production considerably beyond those that are already happening are needed in order to restore equilibrium to the market.
The dollar is expected to strengthen as global tensions attempt to find stability. A strong dollar may contribute to temporary downward pressure for all precious metals.
In this turbulent market climate, you’ll want to access advice from longtime precious metals investment specialists. Contact a Global Monetary Reserve representative at 877-795-9585, or send an email to email@example.com for information and guidance tailored to your investment goals.