With the trade pendulum shifting positive following comments from the White House that the two countries were getting close to a deal, a setback in gold and silver prices is fully justified. In fact, the chief economic advisor indicated that the talks were down to what he called the "short strokes" and that news is given additional credence by reports of high-level meetings.

Apparently the gold market failed to benefit from news that China pumped in $29 billion in bank funding as gold prices in Hong Kong closed lower. In another negative development for gold prices, gold ETF holdings declined for the 7th straight session with silver ETF holdings declining for the 5th straight session.

Certainly, there continues to be global economic uncertainty in place with at least two key economic zones overnight in or flirting with recession. On the other hand, hope springs eternal on the prospect of a trade deal and it would appear as if the economic pressure on China to cushion its economy is increasing which should shift the odds of a small deal much higher.

Furthermore, the $29 per ounce bounce in gold this week should have corrected the oversold condition from the sharp first half of November washout and that could facilitate fresh selling by those who think gold and silver have made major tops.

While it might be premature to suggest a major top is in place, the bias today looks to be down with the December gold contract likely to return to the $1450 consolidation zone.

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Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.