Gold and silver prices continue to seek direction, but due to Thanksgiving the trading slowed down. Nonetheless gold and silver are traded down.
Here is a market outlook of precious metals prices for the last day of the week, November 25th:
Gold and Silver Prices – November Update
Gold and silver prices shifted from green to red as they have sharply fell during the second part of November: During November 11th to November 25th – gold price declined by 5%; silver price also sharply declined by 7.8%.
Hedge Fund Increase their Bets on Gold
According to Bloomberg Hedge Funds increase their exposure to gold. The Hedge Funds’ gold hoarding trend in recent days was reported again in Bloomberg’s report; this trend shows that gold traders are still bullish on this precious metal, despite its recent fall.
The European Debt Crisis Update November 25th
The debt crisis in Europe continues as Germany didn’t manage to sell all its bonds: Germany’s auction only drew 3.9 billion euros for a six-billion-euro auction.
This bond sale failure may continue affecting forex and commodities traders and may further depreciate the Euro which consequently also brings down gold and silver prices.
U.S. Treasuries / Gold & Silver Prices – November
The U.S. 10-year Treasury yield sharply fell in recent weeks, while gold price also fell. During the last couple of months there were strong positive correlations between the U.S. 10 year notes yield and gold price.
As the anxiety level in the markets rises and people lean towards safe haven investments including LT U.S. treasury, it is likely that LT U.S. treasury will thrive, and may trade down gold and silver.
Current Gold and Silver Prices
The precious metals prices are currently traded down in the American markets:
Current gold price per ounce short term future (December 2011 delivery) is traded at $1,683.70 per t oz. a $15.1 or 0.89% decrease as of 18:44*.
Current silver price per ounce short term future (December 2011 delivery) is at $31.030 per t oz – a $0.934 or 2.92% decline as of 18:44*.
(* GMT)
Gold and Silver Prices Outlook:
Following the Thanksgiving holiday in the U.S., it is likely that the trading will be light so that there won’t be many changes in commodities prices. Gold and silver prices will probably continue to seek direction as they did in recent days.
For further reading:
- Hedge Funds Bullish on Gold; Gold Price still Down
- Is Gold Still Considered a Safe Haven Investment?
- Weekly Outlook for 21-25 November
- Gold and Silver Prices Weekly Outlook for November 21-25
Monthly Analysis and Outlook:
- Gold and Silver Prices Monthly Outlook for November 2011
- Natural Gas Prices Monthly Outlook for November 2011
Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.