Mid-Day Gold & Silver Market Report – 12/27/2012
GOLD STILL FLAT AS EQUITIES DECLINE ON IMPASSE IN BUDGET TALKS
Gold remains relatively flat today even though the release of more positive jobs data could be a sign of increased employer hiring. The Gold price is maintaining a tight range as investors await a solution to U.S. budget negotiations. As more positive economic data is released, there is fear that the need for further quantitative easing could come to an end, which would be negative for Gold. However, failure to reach a timely resolution to the fiscal crisis could boost the appeal of safe-haven investments like Gold and other Precious Metals.
Confidence in equities markets continues to wane as the Dow Jones Industrial Average and the S&P 500 are down yet again as fiscal cliff discussions in Washington remain gridlocked. “The markets remain held hostage to the perceived negotiations in Washington regarding the fiscal cliff,” Jim Russell, chief equity strategist at U.S. Bank Wealth Management, said. Senate Majority Leader Harry Reid conveyed that going over the fiscal cliff is highly likely. “They've done nothing,” Reid said of the GOP-controlled House. “The speaker has just a few days left to change his mind,” Reid said, but added, “I don't know time wise how it [reaching a solution] will happen.” Unsuccessful efforts to reach an agreement in Washington could have a negative impact on equities markets and prompt continued movement to Precious Metals as a secure investment haven.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,664.60, Up $3.40.
- Silver, $30.38, Up $0.33.
- Platinum, $1,533.80, Down $4.20.
- Palladium, $709.30, Up $15.90.