2016-11-14 11:59:42

In the result of victory of Donald Trump in the presidential election in the United States, the USD has sharply grown and investor started to withdraw funds from the safe-haven assets, such as the Yen and precious metals.

The prices of precious metals, including silver, are under significant pressure. Last Friday, closing price of December futures for gold at COMEX fell by 3.3% to the level of 1224.30 USD per Troy ounce, which is the lowest closing level since June 3. Spot price of silver at the early European session is near the level of $17.25 per ounce, which is almost by 8% below the opening price of last Friday.

Last Friday, the index Wall Street Journal, which tracks the position the USD against a basket of 16 other currencies, has grown by 0.3%. The rise in the USD increases the price of the precious metal for the holders of the other currencies.

According to the futures the Fed rate, probability of the monetary policy tightening in December is 81.1%. The rise in the interest rates causes problems for the precious metals, as they cannot compete with the other assets because the cost of acquisition and storage of the precious metals is growing.

Trump’s plan of economic development will boost inflation, and therefore will increase possibility of the rate hike by the Fed. This fact will add pressure on the prices of the precious metals.XAG/USD: the prices of precious metals is going down.  Fundamental analysis for 14/11/2016