Mid-Day Gold & Silver Market Report – 2/01/2013
SENATE SUSPENDS DEBT CEILING, DOW BREAKS 14,000
The U.S. Senate approved legislation today suspending the debt ceiling until May 18, 2013. This gives the U.S. the ability to borrow any amount until that day in May. Those additional debt obligations will be added to the current debt limit of $16.4 trillion. This brings to light the March 1 deadline for sequestration. Sequestration is across-the-board spending cuts of $1 trillion with a large chunk coming out of the defense budget. Although some in government think sequestration is a foregone conclusion; “I think sequester’s going to happen,” Senator Tom Coburn said. Economic advisors have cautioned that a sequester could derail the economic recovery predicting job loss and a drop in the economic recovery.
The upcoming three dates to watch:
March 1 is the date of sequestration. This starts automatic cuts in spending.
March 27 is the date of the Continuing Resolution, also known as a temporary spending bill.
May 18 is the date when the debt ceiling will be re-established, including the spending above the $16.4 trillion debt we have.
For a moment today, the DOW Jones Industrial Average broke the important 14,000 mark for the first time since 2007. Positive news about retail investors putting money into stocks and a mostly optimistic jobs report are credited as spurring on the surge. Investors are looking ahead to what moves the Federal Reserve might make. A continuance of the bond buying program helps stimulate the economy and more stock-buying.
At 1:05 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,672.20, Up $9.70.
- Silver, $31.95, Up $0.56.
- Platinum, $1,686.90, Up $11.50.
- Palladium, $756.50, Up $9.80.
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