By Carolina Curiel

ScrapMonster Author

Gold Sets 9-Month Low After Silver Enters Bear Market on Dollar.

Market Daily & Weekly

Note: Indications only, open and closing prices are bids; Data source: Bloomberg; Times as per Dubai

Fundamentals and News

Gold Sets 9-Month Low After Silver Enters Bear Market on Dollar

Gold is getting trampled, and silver entered a bear market.

Bullion sank to the lowest level since February on speculation that prospects for economy-boosting policies by U.S. President-elect Donald Trump will lead the Federal Reserve to raise interest rates. The dollar reached the highest level in more than a decade and U.S. equities hit new records. Silver fell for a second day after closing more than 20 percent below the Aug. 2 settlement.

Investors in gold have been blindsided as they grapple with the consequences of Trump’s plans to revitalize growth and boost infrastructure spending. That push comes as the Federal Open Market Committee prepares to tighten in December, with better-than-estimated data on durable goods and manufacturing boosting the case for action. As the dollar surges, gold holdings in exchange-traded funds are set for the biggest monthly drop in more than three years.

Gold investors got it right on Brexit’s consequences, while misreading the aftermath for bullion of Donald Trump’s surprise win, according to an industry veteran, who offered a cautionary note on the potential for inflation as the new U.S. president gets down to business.

“Gold responded as expected to the Brexit vote, but its reaction to Trump’s election win was an entirely different story,” said Jake Klein, executive chairman at Evolution Mining Ltd., who has more than 20 years’ experience in the industry. “These events present investors with complex decisions and potentially new paradigms.”

Gold traders, analysts are bearish as prices fall to lowest since Feb. on stronger dollar, bets on higher U.S. interest rates.

Gold slid to a five-month low and silver neared a bear market as the dollar rallied amid mounting expectation for higher U.S. interest rates.

In her first public statement since the U.S. election, Federal Reserve ChairJanet Yellen said Thursday that the central bank is close to raising rates as the economy continues to strengthen. With a rate hike next month seen as a near-certainty, the dollar and bond yields are rising and investors are selling assets that don’t pay interest.

Data Forthcoming Releases

Courtesy: http://kalotipm.com.sg/kaloti-market-report-25th-november-2016