Morning Gold & Silver Market Report – 12/03/2012
GOLD STARTS DECEMBER STRONG
The Gold price started December strong on positive manufacturing news from China, regaining some of the footing lost in November. The data from a private manufacturing purchasing-managers index came in slightly stronger than anticipated. In addition, the Gold price could stabilize after last week’s sell off. A strategist at Credit Suisse wrote in a research note that the sell off “appears absorbed and we think prices should now stabilize before a modest recovery could take place towards the end of the year. The seasonal weakness of the U.S. dollar in December should also help.”
Closer to home, the fiscal cliff is being set up as a holiday showdown between the two government powers. Last week saw both the president and the Republican leadership sparring with words over the spending cuts and tax increases due to be implemented early in 2013. The past three Christmas seasons showed us similar eleventh-hour developments that ended up being resolved: 2009 health care, 2010 tax cut, and 2011 payroll tax holiday. Maybe we are getting used to this type of last minute resolution.
At 9 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,718.10, Up $5.40.
- Silver, $33.68, Up $0.42.
- Platinum, $1,601.80, Down $3.80.
- Palladium, $683.40, Up $4.80.