Precious metals pulled back in November, losing some of their safe haven appeal amid positive economic data and an increasingly optimistic trade outlook between the US and China. Gold finished down 2.9% and silver dropped 6.4%. PGMs were mixed with platinum declining 3.8% and palladium rising 2.5%.
After the Fed cut interest rates for the third time this year on October 30, precious metals began November on a high note. Gold and silver were trading above $1,500.00 and $18.00 respectively and were looking to push recent highs. A shift in the Fed’s forward guidance regarding interest rates and positive employment data helped the US dollar gain steam and put significant downward pressure on metals. By November 8, gold and silver suffered their biggest weekly loss since 2016, falling 3.5% and 7.2% respectively.
Stocks performed exceptionally well in November, having their best month since June. The Nasdaq jumped 4.5% and the Dow and S&P 500 rose 3.7% and 3.4% respectively. All three of the major averages reached record highs in November, driven higher by positive economic data, primarily durable goods orders and an upward revision in Q3 GDP.
Gold spent most of the second half of November oscillating between $1,450.00 and $1,470.00, gaining ground one day as trade tensions rose only to drop the next as trade conditions improved. Ultimately, positive economic data and an overall improvement in relations between the US and China proved to be too much for gold and silver to maintain their recent gains.