The metal futures market was down across the board Monday morning as gold and silver futures each hit 7-week and 5-week respective lows. A strong U.S. dollar, coupled with an appetite for risk in a rallying stock market is driving investors away from “safe” metals creating a rather bearish outlook. On Monday morning, December gold was down a full $14.70 an ounce dropping the price of gold to $1,491 and silver was down $.38 an ounce to $17.27.
As stated before, there is less uncertainty and risk in the stock market which is driving investors away from metals. Reports of the U.S. stock market de-listing Chinese companies amid the on-going trade talks were deemed false by President Trump and in turn have created a more stable marketplace. Which was evidenced by Monday morning’s stock number which boasted higher openings as trading began. The outlook isn’t all bad for metals as gold still has the potential to trend up in the near future. Only time will tell.