GOLD PRICE EYES U.S. ELECTION
U.S. stock futures and Precious Metals are up across the board this morning, as Americans are slated to elect the next U.S. President. The fact that both stocks and Metals are gaining seems to be foreshadowing the close race which is expected throughout the day and night, with recent reports saying that an Obama win would be bullish for Gold, while a Romney win would be bullish for stocks. Analysts from Danske Research said in a note to investors, “The biggest concern in the financial market is that the Congress will not be able to agree on softening the impact from the fiscal cliff facing the U.S. next year.”
The managing director of Egan-Jones, a sovereign debt ratings firm, said that even if Congress is able to reach a deal on the fiscal cliff, downgrades to the country’s credit rating are still likely to happen. Sean Egan said, “The key measure on sovereign credit quality is debt-to-GDP, in the case of the U.S., it’s risen rather dramatically, from four years ago at 75 percent debt-to-GDP, to currently over 104 percent… Regardless of who’s elected, either one is going to have to deal with a rather high deficit.” Standard & Poor’s, another credit-ratings agency, downgraded the U.S. rating in 2011, which ignited a record run for the price of Gold.
At 9 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,692.90, Up $8.20.
- Silver, $31.37, Up $0.20.
- Platinum, $1,543.50, Up $2.30.
- Palladium, $617.70, Up $13.70.
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