GOLD’S SAFE HAVEN STATUS TO RE-EMERGE IF NO ‘CLIFF’ DEAL
Precious Metals prices are trading lower this morning, though Gold is headed for a weekly gain to end the year. The safe-haven appeal of Gold could be boosted if U.S. policymakers fail to agree on a deal to avert the fiscal cliff before the end of the year. Peter Fertig of Quantitative Commodity Research said, “Now it is looking like the U.S. economy might head to a fiscal cliff. However, if the politicians do find a timely compromise, stocks will perform well, crude oil is more likely to stabilize instead of fall, and Gold will go up with other risk assets. If there is no agreement, and people don’t know what is happening with the economy, the safe haven status of Gold could re-emerge.”
Palladium hasn’t been at the front of most traders’ minds, but some insiders believe 2013 could be a strong year for the industrial Precious Metal. Dan Dicker, president of Mercbloc, said, “It is my sleeper bet for 2013. It’s a real industrial metal. It’s in very short supply. It’s had a very steady run. It’s under-traded [and] under-owned …” Jeffrey Christian of CPM Group agreed, saying, “Long term we like Platinum and Palladium. These are commodities that are used in every car manufactured and sold in the world, and auto sales on a global basis are at record levels and it’s going to continue to be that way.”
At 9:11 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,662.20, Down $2.00.
- Silver, $30.11, Down $0.14.
- Platinum, $1,530.00, Down $5.00.
- Palladium, $706.80, Down $2.80.
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