Closing Gold & Silver Market Report – 11/8/2012
MONETARY POLICY AND FISCAL CLIFF PUSH GOLD UP
Today investor concern turned in a different direction with the main focus being on global monetary policies. Gold is on the rise in the aftermath of the U.S. presidential elections. Investors are aware and uneasy with the fiscal cliff approaching us within the next 54 days. “I think with the election behind us, traders and speculators are refocusing on monetary and fiscal policy, and they see these as being positive for Gold and that might be contributing to today's strength,” Jeffrey Nichols, senior economic advisor at Rosland Capital, said.
The devastation of Hurricane Sandy along with the upcoming fiscal cliff is expected to put a hold on the U.S. economy’s recovery. The events are set to possibly create at least two quarters of slow moving growth that could trigger a recession. David Rosenberg, economist and strategist at Gluskin Sheff in Toronto, said, “There's no question that if we get the fiscal cliff that we're going to get recession next year. The only question is how deep.” In order to correct the problem, it is likely politicians will have to come to an agreement on higher taxes and spending cuts, an agreement which proved to be a problem last year.
At 5 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,733.10, Up $17.60.
- Silver, $32.38, Up $0.67.
- Platinum, $1,542.80, Up $4.80.
- Palladium, $615.50, Up $4.10.
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