INVESTORS BETTING ON FISCAL CLIFF DEAL
Gold and Silver are both trading lower this morning after the release of relatively encouraging housing data. Stock futures are gaining, and it seems that many investors are betting that Congress and the White House can come to an agreement on the impending fiscal cliff. Adam Sarhan of Sarhan Capital said, “The market is in an upward trend that began about a month ago when D.C. began the hint that a deal would get done for a fiscal cliff. I would say as long as the market continues acting well, I don’t see a reason to prematurely get out (of stocks) in fear of them missing a deadline.”
Saxo Bank Vice President Ole Hansen believes that yesterday’s drop in Gold is the beginning of a change in focus. “With the clear-out seen yesterday, we’ve seen longs taken out, and that could be a potential turning point. As we turn to next week, we will look ahead instead of backward,” he said. On the physical-demand side of things, UBS said in a note, “Our flows to India indicate above-average demand this week and in China, strong volumes continue on the Shanghai Gold Exchange. Physical buying out of Europe has also been notable.”
At 9 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,667.80, Down $2.90.
- Silver, $31.31, Down $0.34.
- Platinum, $1,598.60, Up $3.90.
- Palladium, $694.80, Up $3.90.
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