EXPERTS BULLISH ON GOLD REGARDLESS OF FISCAL CLIFF OUTCOME
Gold is up today as officials in Washington continue to negotiate solutions to the fiscal cliff. Speculation that a deal will be reached before the end of the year has prompted the Federal Reserve to prepare for further asset purchases. “I will be assessing the employment and inflation outlook in order to determine whether we should continue Treasury purchases into 2013,” Federal Reserve Bank of New York President William C. Dudley said today. As with past rounds of monetary stimulus, further easing should be bullish for Gold.
Speaker of the House John Boehner indicated today that no significant progress was made in discussions with Treasury Secretary Timothy Geithner regarding end of year tax hikes and spending cuts. Boehner said, “… I remain hopeful that productive conversations can be had in the days ahead. But the White House has to get serious.”
After an enormous sell-off at the start of yesterday’s trading that caused Gold to drop over $25, Precious Metals look to be rebounding today. Brien Lundin, editor of Gold Newsletter said, “Once longer term investors could see that there wasn’t going to be follow-through selling, then they could safely view yesterday’s sell-off as a ‘one-hit wonder’ and begin taking advantage of the bargain prices created.” Analysts are optimistic about the future for Gold regardless of the outcome of the year end fiscal cliff. Taking into account the debt ceiling, low interest rates, extreme tension in the Middle East and continued economic strain in Europe, investment experts believe Gold looks to be a strong asset to own for the foreseeable future. Following yesterday’s price dip, many investors are taking advantage of suddenly lower prices.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,728.60, Up $9.80.
- Silver, $34.31, Up $0.56.
- Platinum, $1,617.90, Up $5.20.
- Palladium, $688.30, Up $13.10.
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