Falling Gold and Silver Prices Equals Big Opportunity, and well before that, on 21 June 2016, we penned a piece titled Three Charts that Show Much Higher Gold and Silver Prices are Still Ahead..
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Markets will closely analyse upcoming United States data for clues as to the timing of any rate rise. Also helping to put a lid on gold prices on Thursday were firmer equity prices.
Gold prices are aiming for their best week in two months, after huge Fed-induced gains on Wednesday.
– Silver futures climbed on the Comex, while platinum and palladium futures advanced on the New York Mercantile Exchange.
While the Fed moved, as expected, to maintain current rates at its policy-setting meeting, the Fed made a case for hiking rates in December.
“We attribute the price slide to profit-taking by short-term-oriented speculative financial investors given that gold had surged by almost $40 in the space of just two days”, Commerzbank noted. “That’s the sort of environment where gold will flourish, because it creates uncertainty, and it keeps rates low”, he said.
On Thursday the price of gold added to its gains in the wake of the US Federal Reserve’s decision about the pace of interest rate hikes with December futures trading on the Comex market in NY exchanging hands at $1,344.60 an ounce in early trade, up nearly 1% from yesterday. And when the do nothing Feds did nothing, many of our gold and silver stock picks rebounded by 5%+ this past Wednesday, with our junior gold and silver stock picks rebounding even further by 10% and more very rapidly. A slowdown in manufacturing could give the Fed reason to delay a rate hike again at their next meeting. Of course, I say this a bit tongue-in-cheek, because I never believed that there was any uncertainty over this Fed Reserve decision.
RBC Capital Markets said in a note: “Despite gold’s jump yesterday, we think it will remain well short of year-to-date highs, and while it will certainly experience continued volatility in line with a number of other macro assets, we remain cautious through year-end”, RBC said.
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In the other precious metals, silver was last at $19.790/19.810 per ounce, down slightly on the previous close of $19.850. For the best junior gold and silver stocks, the price pullback continued to be less during the most recent period of weakness, and in some instances, almost non-existent with our best junior gold and silver stocks, while the price recovery among our best junior gold and silver stocks was stronger this past Wednesday than their larger capitalized gold and silver stocks. “Investors and markets are taking bets on a December hike and that is weighing on gold prices”.
