Strong price rally continues for gold; silver futures hit record high
NEW YORK (November 13) Gold and silver prices are higher, with silver futures hitting a record high, in early U.S. trading Thursday. Technical buying is featured this week as the near-term technical postures for gold and silver are firmly bullish. The U.S. government reopening today has boosted the precious metals markets, too. A resumption of U.S. economic data releases may give the Federal Reserve the green light for an interest rate cut in December. December gold was last up $27.80 at $4,241.50. December silver prices were up $0.453 at $53.91.
This week’s price gains in silver are around 12%. Supply concerns have also contributed to silver’s rally, with India’s wedding season under way and fears of potential U.S. tariffs on silver. Last week the U.S. Department of Interior added silver, copper, and metallurgical coal to its critical minerals list, highlighting their importance to the U.S. economy and national security.
Global stock markets were mixed overnight. U.S. stock indexes are set to open slighty weaker in New York.
In overnight news, U.S. President Trump overnight signed legislation to end the longest U.S. government shutdown in history, marking the conclusion of the 43-day closure. Trump’s signature means the government can begin to resume normal operations, with federal workers expected back on the job starting today. However, it could still take days or even weeks for federal workers to fully restart their operations and dig out of the backlog after being off their jobs since Oct. 1. U.S. Transportation Secretary Sean Duffy told reporters Wednesday he anticipated it could take as long as a week to start lifting flight restrictions at major airports. The shutdown fight has weighed on the U.S. economy, with the Congressional Budget Office projecting a six-week government closure would lower real gross domestic product growth in the current quarter by 1.5 percentage points. The interim spending package funds most of the government through Jan 30, raising the prospect of another shutdown fight at that time.
More evidence of a global crude oil glut. Global crude oil markets are oversupplied, and it’s most obvious in the Americas, especially the U.S., Bloomberg reports. The futures curve for U.S. benchmark West Texas Intermediate is in a contango structure — in which later-dated contracts trade at a premium to nearer ones — for most of 2026, suggesting weaker demand for prompt barrels. Further signs of healthy supply in the U.S. can be seen in high export volumes. U.S. crude exports for October came in at the highest since July 2024, according to government data. The equivalent curve for global crude oil marker Brent, meanwhile, is largely flat in the months after March. The difference between the two reflects the varying degrees of oversupply that regional crude markets are experiencing. The flat curve suggests demand for prompt Brent barrels is also lackluster. Globally, oil market watchers are broadly expecting a glut next year. OPEC, which has long held the view that oil demand would remain healthy, flipped estimates in the third quarter from a deficit to a surplus on higher U.S. production. The International Energy Agency, meanwhile, has said there would be a record surplus in 2026. The world is set to be in a “slight surplus through this quarter and going into next quarter,” said Vandana Hari, founder of Singapore-based analysis firm Vanda Insights, on Bloomberg Television. This is bad news for the oil industry but good news for U.S. consumers visiting the gasoline and diesel pumps.
The key outside markets today see the U.S. dollar index slightly lower. Crude oil prices are up a bit and trading around $59.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.079%.
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