SHORT TERM PROFIT-TAKING PULLS DOWN GOLD; STOCKS DROP ON BOEHNER COMMENTS
Gold and Silver remain down at mid-day today as profit taking prompted by yesterday’s Federal Reserve announcement of increased monetary stimulus briefly boosted Precious Metals prices. With three weeks left until the end of the year, it is little surprise that short-term investors unsure of how the fiscal cliff situation will play out have taken earnings. However, James Steel, an analyst at HSBC Securities stated that “the ongoing monetary expansion is supportive of Gold, especially if it is a factor weighing on the U.S. dollar.” Following previous Fed announcements of liberal government bond-buying initiatives, Gold and other Precious Metals have benefited greatly in the short term. Some analysts are speculating that the goal of 6.5 percent unemployment has temporarily confused the Gold market as past rounds of quantitative easing were set to be unlimited (a notion which has been positive for Gold).
Stocks have dropped today as House Speaker John Boehner’s comments regarding government spending cuts offset earlier positive news from the weekly jobs report. Boehner stated in a briefing in Washington today, “Unfortunately, the White House is so unserious about cutting spending that it appears willing to slow-walk our economy right up to -- and over -- the fiscal cliff.” The stock market looks to be trading in a fairly tight range as we approach “the cliff” and daily reports from Washington budget negotiations are up one day, then down the next. Investors await decisive information from government officials and “we’ll see a range-bound market until we get something definitive,” according to Peter Jankovskis at Oakbrook Investments LLC.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,698.90, Down $19.00.
- Silver, $32.45, Down $1.31.
- Platinum, $1,614.20, Down $33.20.
- Palladium, $691.20, Down $9.90.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EST)! Or call us Fridays until 6 p.m. (EST)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.