Gold and silver climb up to 2.6% on COMEX as traders weigh Fed rate outlook

what happened

According to TradingView, gold and silver extended their gains in international markets on Monday, November 9, after both metals posted a solid weekly advance. COMEX gold futures traded at $4,134.10 an ounce, up 1.45%, while silver rose 2.63% to $53.31 an ounce.

The main driver is the outlook for US interest rates. Stronger-than-expected jobs data has raised expectations that the Federal Reserve could lift rates in December, which supports the dollar and Treasury yields. Higher rates weigh on bullion because it pays no interest, and a firmer dollar makes it pricier for buyers using other currencies.

Geopolitics adds another layer, with US-Iran negotiations and the Russia-Ukraine conflict possibly affecting safe-haven demand. Last week, metals recovered on bargain buying and short covering, helped by weakness in global tech stocks, though gains faded toward the end of the week as selling pressure emerged.

why it matters

Inflation readings from the US, China, Germany, Japan and India will be closely watched, as they will shape expectations for monetary policy. In India, domestic prices will also depend on the rupee against the dollar, since the country imports most of its gold, and festive demand around Diwali may add activity.

market impact

Gold and silver: Fed rate expectations and a strong dollar cap gains, while geopolitical risk supports demand

• ↔Gold mixed — expected rate hikes and a stronger dollar weigh, while safe-haven demand supports
• ↔Silver mixed — rates and the dollar pull lower, while last week's rebound and geopolitics support

tags

instruments