Gold Edges Higher, Silver Slips Below $50 | November 13 Market Update

Gold edged higher Friday morning after Thursday’s selloff, while silver slipped below $50. October producer prices rose less than economists expected, briefly lifting gold above $3,920. A strong dollar, higher Treasury yields and expectations for a December Federal Reserve rate hike limited the rebound.

Gold, silver, platinum and palladium spot prices

Reuters’ U.S. morning snapshot, with gold quoted at 8:35 a.m. Pacific. Prices are intraday in U.S. dollars per troy ounce.

Gold pares its rebound as silver falls below $50

Gold fell about 3% Thursday and reached its lowest level in more than a year. On Friday it touched $3,922.97 after the producer-price release, then gave back most of that rebound. At Reuters’ morning snapshot, it was still down more than 4% for the week and on pace for its weakest week since early June.

Silver traded at $50.49 in an earlier Friday snapshot before dropping to $49.18, a $1.31 per ounce swing. It was on course for a weekly loss alongside platinum and palladium. Reuters metals report · Earlier metals snapshot

Inflation, the dollar and Treasury yields

• Inflation data were mixed. October consumer prices rose 0.4% from September, above the 0.3% forecast. Producer prices increased 0.3% month over month, below the 0.4% forecast, and were up 6.5% from a year earlier. Consumer price report · Producer price report
• Markets still expected a December rate hike. After Friday’s release, CME FedWatch pricing reported by Reuters put the probability of a quarter-point increase around 91%, with a roughly 9% probability of a half-point hike. Higher yields can make interest-bearing assets more attractive relative to gold, which pays no interest. Reuters FedWatch figures
• The dollar and yields stayed firm. The dollar index traded around 103.34, near a 19-month high, and the two-year Treasury yield was around 4.84%, up roughly 32 basis points for the week. A stronger dollar can make dollar-priced metals more expensive for buyers using other currencies. Reuters dollar and Treasury report
• Oil remained an inflation factor. Brent traded around $96.67 per barrel earlier Friday. Oil’s Thursday rise added to inflation concerns during the metals selloff, even as Brent headed for a second straight weekly decline. Reuters oil report

What to watch next

Watch whether silver can reclaim $50 and whether gold can retest Friday’s $3,923 area. The dollar and two-year Treasury yield remain worth watching ahead of the next Federal Reserve decision, scheduled for December 9. Federal Reserve calendar

When comparing physical coins and bars, check the current spot price and the product premium separately. Spot can move during the day, and the premium affects the total price you pay.

Read more precious metals market updates from Limitless Metals.