Crude Oil Futures Up 6% Weigh on Precious Metals: Silver Hit Especially Hard. Implied gold and silver EFPs are lower but remain above OTC levels.

Crude oil futures are up approximately 6% today, weighing on precious metals, especially silver, which is presently down about $3.70 (~5.4%). Gold is down approximately 1.3%.

Implied gold and silver EFPs are lower but remain above OTC levels. The implied December silver EFP on WatchGold is currently around 53 cents, down a healthy 12.5 cents from yesterday, a big move. The implied December silver EFP yield is approximately 3.83%, down from over 4% yesterday, but still above the OTC rate of approximately 3.68%.

While the long-term fundamentals for precious metals remain positive, headline-driven news surrounding Iran, along with the upcoming FOMC meeting, continues to weigh heavily on prices.

Unfortunately, patience remains the best strategy for now.

For informational purposes only. Not investment advice.