The precious metals sector performed weaker in November than in the previous weeks. The gold price in particular was under pressure in November and ended the month at $ 1,777 an ounce. This means that it has become 5.4 percent cheaper than in the previous month. The price of silver also fell by 8.6 percent and was at 22.62 US dollars per troy ounce at the end of the month. “Precious metal prices recently corrected in the wake of the generally euphoric mood among investors regarding the vaccine news. After the huge rally this year, this is a healthy correction. The outcome of the US election did not have a major impact on the precious metal markets, either positively or negatively. Basically nothing has changed in the monetary market policy of the Fed with Biden’s victory: There is still a tendency towards larger issuing programs that have an inflationary effect in the long term, ”says Martin Siegel, precious metals expert and managing director of Stabilitas GmbH.
It is also interesting to take a look at the development of the mining stocks, which were initially weaker in November but again showed relative strength to the gold price at the end of the month. “From our point of view, the upward movement of the mining stocks indicates a stabilization of the precious metals sector, which is why we expect gold prices to rise again in the medium term,” explains Siegel.