GOLD DOWN ON FISCAL CLIFF CONFIDENCE
After trading flat all morning, Gold has fallen more than $20 an ounce at mid-day. Today’s dip comes as investors eye positive developments in fiscal cliff negotiations. Julian Phillips, founder of GoldForecaster.com, believes the sudden optimism over discussions in Washington is premature by stating, “Small steps toward an agreement are [supposedly] being made in Washington, but we prefer to act on a deal, not the expectation of one.” Many analysts are still bullish on the long-term appeal of Gold. Concerning today’s price pullback, one analyst stated, “Gold is on sale and should be seriously looked at below $1,700.”
The Dow Jones Industrial Average and S&P 500 have both benefited from the hopeful outlook expressed by House Speaker John Boehner over reaching a fiscal cliff solution. The encouraging news has pushed world stocks to a three-month high. With Chinese demand for physical Gold increasing, an increase in quantitative easing announced last week and continued uncertainty regarding the U.S. fiscal cliff, enduring gains are expected for Gold and other Precious Metals.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,698.20, Down $21.80.
- Silver, $31.70, Down $0.57.
- Platinum, $1,594.50, Down $15.00.
- Palladium, $690.90, Down $7.40.
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