Morning Gold & Silver Market Report – 11/5/2012
POLITICS PUT INVESTORS ON THE SIDELINES
The two largest economies in the world, the U.S. and China, both had investors sitting on the sidelines this weekend. The U.S. presidential vote is tomorrow, while on Thursday, China’s ruling Communist Party starts its 18th National Congress. At this congress it will see a new generation of leaders that will hold power for the next 10 years. Investors are showing caution while strategists are saying it may not be time to be overly reserved; some risk, including equities, should be resumed.
Pre-election sentiment is that an Obama win will be good for Treasuries and a Romney win will be good for equities. After the election all eyes will turn to the fiscal cliff and how the government will deal with the looming spending cuts and rising taxes.
Gold rose slightly after strong jobs data forced Gold to a two month low on Friday. A strong U.S. dollar is keeping the Precious Metal from rebounding too high. The dollar rose to nearly a two month high against a basket of currencies as investors sought safe haven before the U.S. presidential election tomorrow.
At 9 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,682.90, Up $6.70.
- Silver, $31.06, Up $0.16.
- Platinum, $1,546.50, Up $3.10.
- Palladium, $600.30, Down $0.40.
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