Mid-Day Gold & Silver Market Report – 11/9/2012

CONSUMER SENTIMENT IN TUG OF WAR WITH FISCAL CLIFF

U.S. stocks are up, taking a bite out of the S&P index’s biggest weekly decline since June. A better than expected report on consumer sentiment has added life to an otherwise worried market. Post-election stresses have been weighing on the market since the election. David Kelly, chief market strategist at J.P. Morgan Funds said, “It’s hard to be enthusiastic buyers with uncertainty out there.” He is referring to the ever-present fiscal cliff. In his estimation, there are only three outcomes: an early deal, a just in time deal, or a last minute deal.

The Gold price rose again today hitting a three week high. There is an expectation that U.S. monetary policy will continue to favor Gold investors. Gold’s safe haven appeal grows when money flows easily into the economy as it does with the quantitative easing programs. Nic Brown, head of commodities research at Natixis said, “An Obama victory enhances the likely longevity of ongoing quantitative easing.” Outside of the U.S., China’s Gold demand is expected to grow 1 percent this year. This would be a record of 860 tons of Gold.

At 1:28 p.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,733.90, Up $6.40.
• Silver, $32.63, Up $0.33.
• Platinum, $1,555.70, Up $14.70.
• Palladium, $612.90, Down $2.50.

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