Gold Has Already Priced In December Rate Hike; Silver Is On Sale – RJO Futures | Kitco News

Although weaker, gold prices managed to hold Tuesday as shares in the world’s largest gold-backed exchange-traded fund saw low levels last seen in 2008. Commenting on the metal’s lower price is RJO Futures’ senior market strategist Phil Streible, who said he expects holdings in SPDR GLD to gradually move higher. “I think gold prices really went through quite a bit of liquidation,” he told Kitco News Tuesday afternoon. “I would expect those holdings to start to level out and pick up here as news has been digested.” One of the main factors weighing on gold prices has been the expectation of a U.S. rate hike by the Federal Reserve in December, which Streible says is likely. “They should have done it several months ago but the fact that they didn’t means they missed their opportunity,” he said. Following Friday’s strong jobs report, gold futures fell to a three-month low and have continued to be pressured by the idea that a 2015 rate hike is still on the table. However, Streible noted that prices have “flattened out a bit” over the last couple of trading sessions. “I think the initial rate hike that we should see in December has been priced in,” he said. The metal that really has Streible optimistic is silver, which he said should move higher. “I love silver for the long term. With it being down nine sessions, I look at it like it’s been on sale 9 days in a row,” he said. According to Streible, the uses of silver in electronics and medicine, in particular, make him think prices should be favorable. Kitco News, November 10, 2015.

Categorised as: interesting

Posted by: Alith1992

Comments are disabled on this post

Comments are closed.

Disclaimers – All content here is NOT presented as investment advice; LessThunk is NOT endorsing any website or specific investment by displaying external links.

We may or may-not (coincidentally) hold some quantity of stock or other investment related to any given post, no endorsement is implied in any sense.