Roy’s Commentary 11/13/15

Precious metals had a choppy day yesterday as the market kept reacting to hawkish and dovish comments by members of the FOMC. In the end prices remained close to unchanged at the closing bell. As the week draws to a close precious metals continue to feel the pressure of the strong USD as it appears increasingly likely that a rate hike is coming in December. All markets are now reacting to the looming rate hike and this is adding further pressure to our market. Crude oil like gold is being weighed down by the stronger USD and an increase in global inventory levels. This morning finds crude down another two percent and trading below $41.00 per barrel with many commentators calling for a drop into the mid $30.00’s. Add to this the huge fall in platinum, palladium and base metal prices this week and it is difficult to see gold and silver doing anything other than probing lower despite the uptick in demand we have all seen this week. As has been the case for the past few years buyers often wait on the sidelines and then enter the market on the dips. This trend continued in the third quarter of 2015 as the World Gold Council reported that global demand for gold rose by 8 percent when compared to the third quarter of 2014.