TRADE DEFICIT SHRINKS; JOBLESS CLAIMS HARD TO PIN DOWN
The number of people filing for unemployment benefits fell by 8,000 last week; however, the effects of Hurricane Sandy are playing a big part in these numbers. One state claims that the loss of electricity because of the storm is suppressing filings. Others are claiming that workers who have lost jobs due to the storm are beginning to file. The Labor Department spokesperson admitted that it may take three to four weeks for the full impact of the storm to be realized in the jobless numbers. In an unexpected positive twist, the U.S. trade deficit shrank in September as exports rose. The gap fell to $41.5 billion. This is the smallest the deficit has been since December 2010.
Gold could see a longer term benefit from the political uncertainty surrounding the fiscal cliff. With nearly $600 billion in spending cuts and tax increases set to kick in, Gold is seen as a safe haven investment.
In overnight trading, U.S. stock futures began the steady climb back after the worst day of the year. Henrik Drusebjerg, senior strategist at Nordea Bank, said “The market will be very vulnerable to any political comment, whether it’s coming from Democrats or Republicans, and will look at any signs of negotiations being easier or tougher than expected.” His comments point to the impending fiscal cliff and the fact that investors are acutely aware of everything coming out of Washington.
At 9 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,715.70, Up $0.20.
- Silver, $31.84, Up $0.14.
- Platinum, $1,542.80, Up $4.80.
- Palladium, $612.50, Up $1.10.
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