Market Recap: Commodities Were Mixed on November 29 PART 3 OF 4
By Val Kensington | Nov 30, 2016 6:38 am EST

Gold prices fell on November 29

Gold prices fell on November 29 as the sentiment in the market became weaker. On November 29, the COMEX gold futures contract for the December contract fell 0.23% and closed at $1,187.9 per ounce. The COMEX silver futures contract for December delivery closed the day at $16.66 per ounce—a gain of 0.47%.

Improved market sentiment weighed on gold prices

Better market conditions weakened the sentiment in the gold market. Gold started this week on a positive note by gaining as much as 1% due to a pullback in the US dollar. However, it lost strength on November 29. The US dollar strengthened after Donald Trump won the US presidential election. Also, prices rose to more than a 13-year high. It pulled gold prices lower this month because the stronger dollar weighs on dollar-denominated commodities. The market sentiment improved. The market expected an increase in spending, growth, and inflation under Donald Trump’s presidency. The improved market situation takes the shine out of safe-haven assets such as gold and silver.

Increased expectations of an interest rate hike

Increased expectations of an interest rate hike by the Fed in December also weighed on gold prices. As of November 29, the chance of an interest rate hike in December was at 95.4%. The Fed’s recently released November minutes also strengthened the case for an interest rate hike in December. The Fed’s minutes showed that most of the members said that it “could well become appropriate” to raise the interest rates “relatively soon.”

On November 29, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), and Royal Gold (RGLD) rose 0.29%, 0.3%, and 0.99%, respectively, while Silver Wheaton (SLW) fell 0.74%. The SPDR Gold Trust ETF (GLD) fell 0.45%.

In the next part, we’ll discuss how the companies in the energy, metals, and miners sector performed on November 29.