GREECE PASSES 2013 BUDGET; GOLD POISED FOR HIGH DEMAND
U.S. stock futures are up this morning as markets were buoyed by both economic data out of China and news that Greece has passed a 2013 budget. Peter Cardillo, chief market economist at Rockwell Global Capital, said, “The news out of China (trade, exports reaching a five-month high) and Greece is positive and may overshadow the fiscal-cliff fear.” It is important for Greece to have passed a budget before the meeting of finance ministers. The budget is a positive sign and a key step in releasing the tranche of aid payments to boost the country’s finances.
Expect the week’s market activity to start off slowly as bond markets are closed Monday for Veterans Day, which could weigh on equity volume as well. Congress and President Barack Obama return tomorrow to begin work on the fiscal cliff. The early economic impact of Superstorm Sandy could start to show up this week as well. Stuart Freeman, chief U.S. equity strategist with Wells Fargo Advisors, said, “I think we’re just going to bounce around here. We’re kind of sitting at the 200-day moving average (on the S&P), and I think this market, while we’re waiting and watching, is going to be kind of nervous.”
Internationally, Gold is still in high demand, especially from central banks. Barrick Gold Corp, the world’s biggest Gold producer, said demand could hit $2,000 an ounce in 2013. They cited rising costs and production constraints holding supply in check. Barrick Chief Executive Jamie Sokalsky said, “It's going to be a demand-driven type of move.”
At 9 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,735.20, Up $2.80.
- Silver, $32.50, Down $0.15.
- Platinum, $1,566.60, Up $8.70.
- Palladium, $612.10, Up $0.10.
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