Market Shakeups for Gold and Silver Prices for 2016
The prices of gold and silver are always moving, influenced by factors such as current events, market speculation, currency fluctuations, and supply and demand. In 2016, there were several events that influenced the highs and lows of the gold and silver market. For investors, staying on top of these fluctuating prices is crucial to financial success. Here are some of the events that affected the market the most:
Brexit
The British EU Referendum results were announced on Friday, June 24, 2016, and pushed gold to a 2-year-high. After the announcement that the UK would exit the EU, the price of gold climbed 4.7% to $1,316.05 an ounce by 11 a.m. in London. In the US, the price of gold rose by 8.2% to $1,358.2 an ounce before settling around $1,325 per ounce.
Silver increased from $17.36 to $17.85 immediately following the vote jumped to $20.40 by July 4, 2016.
U.S. Presidential Elections
The price of gold has historically dropped during election years, especially in the days leading up to the vote. In 2016, this remained true as the price of the yellow metal suffered its biggest one-day percent loss in five weeks on Monday, November 7, hovering between $1,280-$1,290 per ounce.
For silver, the days surrounding the election remained consistently around $18.75-$18.86, but the price fell on November 14 to $16.97 and remained in the low $17s and high $16s for the remainder of 2016.
Currency Values
When the dollar is weak, gold demand rises and the price increases, and vice versa. In 2016, low-interest rates in the US, UK and Asia have made currency-based investments like bonds and treasuries less appealing to investors. Thus, increasing the demand for gold.
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