FISCAL CLIFF TALKS CONTINUE TO DOMINATE MARKET MOVEMENTS
Yesterday saw Gold plummet to its lowest level in 3 ½ months but the metal is relatively flat today. The back-and-forth sentiment regarding fiscal cliff aversion leaned negatively today after Tuesday saw positive reports, which prompted a major sell-off. Gold has gained 7 percent in 2012 as central banks around the world continue to be net buyers of the metal. However, investors remain concerned over market stability, and interest rates remain close to zero. Economists, financial analysts and individual investors continue to speculate about Gold’s future as the fiscal cliff draws near.
Stocks fell today on less-than-optimistic news concerning federal budget negotiations. The Dow Jones Industrial Average fell almost 100 points as the market remains range bound as daily news surrounding fiscal cliff developments moves the market. Many experts remain nervous about the prospect of reaching a solution in time. Jeffrey Saut, chief investment strategist at Raymond James & Associates, said, “In theory, an agreement could be reached and signed into law after Christmas, but that’s unlikely. There’s simply not enough time to iron out the details.” Economists have predicted that failure to reach a reasonable resolution to the $600 billion in spending cuts and tax hikes could send the U.S. into another recession.
At 5 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1668.00, Down $2.70.
- Silver, $31.08, Down $0.57.
- Platinum, $1590.60, Down $4.10.
- Palladium, $695.00, Up $4.10.
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