Mid-Day Gold & Silver Market Report – 12/11/2013
U.S. BUDGET DEAL REACHED; CAUSES LITTLE REACTION FROM GOLD
Gold and Silver prices remain steady today as finalization of the U.S. budget negotiations failed to have a significant impact on Precious Metals. The budget deal was reached ahead of next month’s deadline and has allowed the U.S. to avoid another government shutdown. Gold is hovering near its highest level in three weeks and the lack of price movement following the budget deal probably points to the continued focus investors and analysts have on the future of quantitative easing. However, some experts believe the success of budget negotiations in Washington could be advantageous for Gold. CME Group analysts said, “Growth and optimism might not be guaranteed in the face of a budget deal. But that element has been holding down sentiment in almost every corner of the world economy for almost two years.”
After reaching an all-time high, the S&P 500 has fallen for a second straight session as U.S. stocks reacted negatively to the new budget deal. In the eyes of analysts and investors, achieving a resolution to U.S. budget talks will most likely lead to an initial Fed stimulus taper in the near future. “We’ve moved much closer for the Fed to taper in December,” Jeffrey Kleintop, chief market strategist at LPL Financial LLC, said. “Markets are increasing their views that we are a week or so away from tapering because of improving economic data and clearing the hurdle for a budget deal. This deal is great, it’s a positive, but also a negative because it could prompt the Fed to taper sooner.”
At 1:19 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,259.70, Down $3.90.
- Silver, $20.39, Up $0.03.
- Platinum, $1,387.80, Down $2.90.
- Palladium, $737.80, Down $0.70.