WALL STREET REOPENS; ELECTION, FISCAL CLIFF TO DECIDE GOLD’S FUTURE
Precious Metals prices are rising this morning ahead of Wall Street’s official reopen Stock futures are higher as well, with trading expected to begin at 9:30 a.m. (EDT). Yesterday saw the release of the Case-Shiller index for August, which showed that home prices continued to rise. Henrik Drusebjerg of Nordea Bank said, “The Case-Shiller index yesterday again was giving good news on the real estate market and I think that’s one of many small greenshoots over the last month or so, implying a little more growth is underway for the U.S. economy.”
Though trading higher today, Gold may see its first monthly loss since May. The metal has been trading in a tight range lately, and is expected to continue to do so with the U.S. Presidential election looming. Dominic Schnider of UBS Wealth Management said, “People wonder if Romney is going to be in power and what kind of monetary policy we will have. He is clearly not in favor of what the Fed is doing.” Recent Federal Reserve actions have been very supportive of the Gold price, so if a new president disapproves, there may be changes to that part of Gold’s price support. However, the fiscal cliff at the end of the year might make the winner of the election irrelevant when it comes to the price of Gold. Schnider added, “I don’t think they will come to an easy agreement on how to handle things, which could be negative… for the dollar and quite supportive of Gold.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,718.10, Up $5.40.
- Silver, $32.15, Up $0.32.
- Platinum, $1,566.30, Up $15.20.
- Palladium, $606.10, Up $9.00.
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