GOLD STARTS DAY DOWN; CLIFF DEAL IN DOUBT
Precious Metals prices are falling this morning. While the end of the year seems to be ending quietly, the long term outlook for Gold is still positive. “As an investor taking the long view, Gold remains an attractive asset class to be in, but some patience is required as the factors that got us here over the last few years remain,” Ross Norman, chief executive of Sharps Pixley, said.
In Japan, the economic situation has caused the central bank to introduce another round of monetary easing, which marks the third in the past four months. These measures have been taken to help slow the decline of the Japanese national currency, however, this move has not impressed economists in the region. “Today’s action will have little impact on economic activity in the next quarter as demand to borrow funds provided by the central bank remains weak,” said Junko Nishioka, chief economist at RBS Securities Japan Ltd. and a former Bank Of Japan official.
The Precious Metals market is not the only entity being affected by the lack of progress in the fiscal cliff talks. The stock market has also opened relatively flat to start the day. Talks between the White House and Congress seemed to have come to a standstill as of late and it is making for worried investors. “This is enough to make people think talks have regressed, which is making people nervous. We don't know how much of this is just political posturing, and we're probably past the point of automatic faith a deal will be cut,” said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, PA.
At 9 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1653.70, Down $14.00.
- Silver, $30.27, Down $0.84.
- Platinum, $1577.40, Down $16.50.
- Palladium, $682.70, Down $15.70.
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