Market Overview: Both gold and silver are moving slightly higher today in light trade. Markets in general are not seeing much movement today as investors turn their attention to the upcoming Christmas Holiday. Trade may now remain light until the end of the year as investors also await Donald Trump assuming office next month. Although gold and silver appear to be on their way to ending 2016 on a sour note, these precious metals could potentially be closer to finding a near-term bottom and perhaps even a longer-term bottom. Gold and silver got 2016 off to a great start as global stock markets faltered, and a similar situation could potentially unfold in early 2017 once the recent state of euphoria wears off.
Key Data Points: MBA Mortgage Applications this morning showed a 3 percent rise in both new home applications and refinancing despite higher mortgage rates.
The latest reading on Existing Home Sales is due later this morning, and consensus estimates are looking for a reading of 5.535M.
Investors will have a few more key pieces of data to look over this week, including GDP, Durable Goods Orders, Weekly Jobless Claims and more.
Outside Markets: Stocks remain near recent highs and have thus far not shown any significant signs of pulling back. This trend may continue into the New Year, and possibly well into the first quarter.
The dollar index is taking a breather today but also remains not far from recent highs. The dollar appears poised for further upside as well, and additional dollar strength could potentially keep any rallies in gold and silver at bay.
Treasuries are seeing a little bit of buying today, as the recent slide in prices takes a rest.
The Big Picture: The selling in gold and silver appears to have slowed, although it remains unclear if a bottom has been reached. Markets may simply drift into the end of the year at this point, and gold and silver may not see strong buying interest until 2017. As the Trump Presidency gets closer and closer, risk assets may remain in favor. That could potentially change, however, if some economic progress is not seen early on his Presidency. Should risk appetite begin to falter and should stocks start to show signs of weakness, gold and silver could potentially see significant buying interest as investors look to diversify. Any weakness in economic data may also boost gold and silver while possibly tempering expectations for three rate hikes in 2017.
This market update is provided weekly with analysis. You can always check current silver prices by watching our on-site charts.