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Precious Metals Are The Big Losers Headed Into the Weekend

Markets did not know what to do after election results poured in, although many markets had been pricing in a possible Trump victory for about one month prior to the election, as polls were too close to call and also the accuracy of many mainstream polls were thrown into question.

Gold futures fell precipitously Friday, their lowest finish since June, thanks to strength in the U.S. dollars and equities. The Federal Reserve, according to many analysts, might increase interest rates next month. The main reason for precious metals decline is similar to why global currencies have fallen: the strength of the dollar.

Below you can see the .24 increase in the USD in the US Friday, withcommodities taking a big hit such as coffee and Orange Juice, but none so bad as gold, platinum and silver. Silver is a major loser on the day with a 7.46% drop by 3pm EST. Gold was down 3.32% by that time.

 

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Silver is near its lowest levels since 2011. It fell today nearly $1.50.

 

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Below, you can see just what a strong dollar can do to the price of gold.

 

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Despite new labor deals for miners in the platinum-heavy South Africa, the metal fell nearly 5% from $985 to $941.90 by 3pm EST.

 

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The VIX returned to its pre-election trend of increasing, as it increased today. Just how far gold has to fall with Donald J Trump, who once said he’d consider a gold standard, as president-elect has yet to be seen.

 

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