Mid-Day Gold & Silver Market Report – 12/31/2012
GOLD SEES 12TH YEAR OF GAINS; OPTIMISTIC FISCAL TALKS
Safe haven buying has pushed Gold up today, as we are mere hours away from the edge of the fiscal cliff. The metal is set to end the year up about 6 percent, racking up a 12th consecutive year of gains. The central drivers of the Gold price during 2012 were remarkably low interest rates, eurozone financial instability and the continued net purchase of Gold bullion by central banks. “It seems that a failure to reach a compromise, which is looking more and more likely, is supporting Gold,” said Peter Fertig, an analyst with Germany-based Quantitative Commodity Research.
Uncertainty continues concerning the outlook for markets in 2013. Politicians meet today for last-ditch discussions to avoid the fiscal cliff, which could slow down the global economy if an agreement is not reached. So far, Monday has seen a choppy start for equities markets. However, the Dow Jones Industrial Average is up as officials in Washington have expressed optimism over today’s budget negotiations. “The discussions are going very well,” Sen. Bob Corker (R-Tenn.) told CNBC's “Squawk Box.” “I do think there's going to be a resolve to this. It's almost irrelevant when it happens — it's going to happen, and it's probably going to happen today.” Equities are expected to respond positively to a speedy resolution but a solution does not mean investors will shy away from historically safe investments such as Gold and Silver. Continued government stimulus, European debt woes and hesitancy regarding stock volatility could all be positive influences on Gold in the coming year.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,676.40, Up $20.00.
- Silver, $30.29, Up $0.30.
- Platinum, $1,536.50, Up $15.90.
- Palladium, $704.30, Up $3.00.
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