WHAT CAN DEFEAT GOLD? FISCAL CLIFF APPROACHING QUICKLY
Once again Gold successfully fought off the negative news in the market and remained flat for the day after being slightly down this morning. The eurozone financial crisis is worsening by the day, and Gold has been negatively affected by the situation. A Reuters poll released today reflects that 27 analysts remain bullish on Precious Metals for the long term. Another positive note is that the analysts are anticipating Gold to see its thirteenth successive year of gains in 2013 with a target average price of $1,853.75.
Americans are expecting the worst for the end of 2012 when the United States government is forced to deal with scheduled spending cuts and tax increases, which is referred to as the “fiscal cliff.” Spending cuts will disrupt more than 1,000 mandated government programs. Tax assistance laws put into place by the Bush administration and extended during the Obama administration are also set to expire Dec. 31, 2012. It is predicted that the economy could be heading towards another recession if it is not handled properly and in a timely manner. Chad Stone at the Center on Budget and Policy Priorities believes the circumstances may not be so severe with the “fiscal cliff” acting more like a “fiscal slope” that the economy can easily recover from. Stone said, “The slope would likely be relatively modest at first. A relatively brief implementation of the tax and spending changes required by current law should cause little short term damage to the economy as a whole.”
At 5:02 pm (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1763.50, Down $1.00.
- Silver, $34.02, Up $0.03.
- Platinum, $1675.00, Down $17.30.
- Palladium, $650.20, Down $9.00.
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