first majestic silver

Gold, Silver Prices Hammered By Bearish Outside Market Forces

November 20, 2017

New York (Nov 20)  Gold and silver prices ended the U.S. day session sharply lower Monday. Friday’s good gains in both metals that pushed their prices to four-week highs were all taken back and then some today. The pounding was mainly due to bearish outside markets that saw a higher U.S. dollar index, a firmer U.S. stock market and lower crude oil prices. December Comex gold was last down $20.70 an ounce at $1,274.80. December Comex silver was last down $0.513 at $16.86 an ounce.

Gold and silver prices were weaker in overnight dealings, but the selling pressure began to accelerate after the morning release of a very upbeat U.S. leading economic indicators report for October. Pre-placed sell stop orders were triggered in the gold and silver futures markets, to exacerbate the downside action Monday.

Efforts by German Chancellor Angela Merkel to form a coalition government failed over the weekend. This has created some uncertainty, especially in the European markets, as the European Union’s largest economy now appears to be in somewhat of a temporary leadership crisis. This news prompted a sell-off in the Euro currency, which in turn helped to boost the greenback.

Meantime, Nymex crude oil futures prices were lower and are trading just below $56.00 a barrel Monday afternoon. Oil bulls still have the overall near-term technical advantage, but stiff chart resistance layers lie just above the market. Traders are looking ahead to next week’s OPEC meeting.

The U.S. stock indexes were firmer in afternoon trading Monday, which was also a negative for the competing asset class, precious metals.

Most markets will likely see lower volumes as the trading week progresses, what with the U.S. Thanksgiving Day holiday on Thursday. The Friday after Thanksgiving is typically one of the slowest trading days of the year.

Reuters

Gold Eagle twitter                Like Gold Eagle on Facebook