FSMNews

The commodity is looking to extend this miraculous run this week despite the U.S. rate expectation barring some of the gains that it may potentially garner. On the bright side, the gold prices are nearing to a two-week high and this is all thanks to the softer dollar and the hefty geopolitical tension that Spain and North Korea entered.

The expectation for the next interest rate hike in the U.S. has been set ablaze once again in the past few weeks, this immense following from analysts and market specialists have really sunk deep in the market despite the geopolitical tremors from Spain and North Korea.

On the other hand, a familiar commodity, the Silver, has also managed to pull out gains and managed to capitalize on the softer dollar as well. Silver prices were overshadowed by its bigger brother, analysts are still keen on the commodity’s growth and performance.

FSMNews

Gold Prices

December gold deliveries saw a great increase and positive gains with 0.8% increase or a total of $10.10 before settling at the tremendous price of $1,285 an ounce. The delivery prices were positive all throughout the borders and were relatively higher than of last week’s prices. Gold’s price was hit with a massive four-straight week low before surging these recent days.

Spot gold was hovering at a 0.6% high today at $1,291.90 an ounce. Its prices were also soaring today as they managed to hit the $1,292.29 price mark which was last felt last late September. Overall U.S. gold futures for December were all up as well.

Silver Prices

Just like gold’s deliveries, silver’s December deliveries were also soaring and tallied a massive 1.32% increase on the market before easing to the 1.1% increase or a total of 18 cents at $16.971 an ounce. It also manages to extend some of its price gains from last week, which was reported to be at a 0.7% despite notable struggles.

FSMNews

Commodities and Dollar’s Future

Despite the bullish run, the commodities remained volatile and analysts are still saying that their prices might still be in trouble due to the immense pressure that the next interest rate hike possesses. The Fed’s statement and the announcement that a figurative 90% chance has been tallied for the next interest rate hike that may happen in December.

According to the INTL FCStone, "We still reiterate our view ... that the precious metal will likely remain under pressure over the short term, as we see a firmer dollar, resilient equity markets, rising interest rates and slightly quieter geopolitical conditions all combining to keep serious rallies in check,"

Follow FSM News for your round-the-clock market update! We provide you with the latest news surrounding Forex, commodities, automobile, consumer, financial, economy, and technology. Never miss any news beat! Subscribe now!