The Federal Reserve concluded its last FOMC meeting of the year, and as expected, they kept their benchmark interest rate unchanged. They also released an updated economic forecast in its Summary of Economic Projections (SEP).

Two important events that will shape the economic fabric occurred today. The November CPI was released by the BLS this morning, and the last FOMC meeting of the year began today.

The U.S. Bureau of Labor Statistics released the latest information on inflation vis-à-vis the November Consumer Price Index report. 

Gold prices plunged this week, giving up almost $75 per ounce. This occurred after hitting the highest value on record when gold traded to approximately $2153 on Monday, only to close over $100 below the new record high at $2048. Although two out of the five trading days this week resulted in gains (Wednesday and Thursday), these gains were tepid at best.

Market participants are beginning to lighten their trading activities as the holiday season unfolds. We can expect to see volume decline as traders begin to square their books at the end of the year. Lower holiday volume can increase volatility, as it takes smaller positions to move the market.

Analysts and market participants are overwhelmingly optimistic that the Federal Reserve has ended its quantitative tightening (QT) cycle, which included aggressive rate hikes. This series of QT began in March 2022. Currently, the Fed’s benchmark rate is between 5 ¼% and 5 ½%.

Gold futures basis, the most active February 2024 contract closed at $2091.70 on Friday, December 1. This after gold gained $35.60 or 1.73% opening at $2056.56 with a strong volume of 230,000 contracts. This would be the highest close for the February contract of gold futures. Trading would not resume until Australia’s open Monday morning, (Sunday in the United States).

Recorded on Thursday, November 30, Ivan Bayoukhi spoke with me, when I joined his show on WallStreet Silver.

As the saying goes; you ain’t seen nothing yet! The price of Spot gold today is fixed at $2070.10, just about $10 below the record high achieved in May, according to Kitco News. Based on the continuous contract of gold futures which merges the most active contract month into the next most month active month broke the record high today.

From the beginning of October to the last day in November silver has had a profound and dramatically strong gain. This despite one moderately deep correction beginning on October 19, and concluding on November 13. Monday, November 13, was the exact day that Silver pivoted back to a bullish demeanor.

After an exceedingly strong performance in gold futures, the most active February 2024 contract traded to a higher high than yesterday.  However, unlike recent days, pricing during the current session moved well below the daily highs and briefly traded negative on the day.