Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Market Shakeups for Gold and Silver Prices for 2016

  by    0   0

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:

map of the UK with the word brexit

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.

clinton trump and the Federal building

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.

dollar bill

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.

Understanding what affects gold and silver prices and how to react is critical to buying gold and silver . Download Peter Schiff and Mike Maloney’s Exclusive 5-Year Gold Outlook to hear expert forecasts for gold from today till 2020 and learn how to expertly time your precious metal purchases.

 

Get Peter Schiff’s latest gold market analysis ñ click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Day 35: Higher Interest Rates Threaten the Future of Trump’s Economy

The Trump 100: His first 100 days as presidentThis week, we saw predictions Trumponomics will indeed bring a spike of growth, but it will be a spike quickly destroyed by crippling interest rates. Could this be what’s causing the US Federal Chair Janet Yellen to suggest raising rates too fast would be “unwise”? As seats start opening up at the FOMC, Trump is […]

READ MORE →

Today We Celebrate the Birth of a Real Patriot

the face of irwin schiffToday, we celebrate the birthday of Irwin Schiff, one of our nation’s most influential activists for free markets and limited government. Irwin was a proud, freedom-loving American who died a political prisoner in a Texas federal prison. Neither the irony of his passing nor his convictions escaped the millions of people Irwin inspired to become […]

READ MORE →

3 Reasons Gold is Rising and the Dollar is Falling

man standing over large drain with his money falling down itThe price of gold is moving in contradiction to its economic purpose, which is to serve as an investor safe haven against inflation. Shortly after the election, the dollar index spiked as gold prices began a quick decline; however, recently the trend has reversed. Gold is now up around 7% since the Fed’s December rate […]

READ MORE →

CPI Numbers Show Inflation Already Beyond Fed’s Benchmark

dollar bills spread out with a single band-aid sitting on oneIn Peter Schiff’s latest podcast, Peter discussed the Consumer Price Index and retail sales reports released last week. Janet Yellen provided the data in a report to Congress. The chairwoman’s testimony brought on a new wave of optimism in the markets that interest rate hikes would be coming sooner than last year’s cycle of promise-then-disappoint. […]

READ MORE →

Day 28: Brazen Trump Inspires Murky Global Markets

The Trump 100: His first 100 days as presidentYellen spoke to congress this week, and her remarks about the new Commander in Chief could be foreshadowing an upcoming battle between the Fed’s goals and Trump’s plan to weaken the dollar. The President also made amends with China’s President Xi Jinping, but has new problems to deal with as other foreign governments shed their […]

READ MORE →

Comments are closed.