Closing Gold & Silver Market Report – 12/11/2013
U.S. BUDGET DEAL PRESSURES PRECIOUS METALS, STOCKS
Gold fell slightly today due to Congress reaching a U.S. budget deal Tuesday evening. This second time around for budget talks seemed to be more successful as lawmakers agreed to fund the government through mid-January. Their approach eliminated the threat of a government shutdown, which many feared would occur again as it had in October. The deal calls for reducing automatic spending cuts and deficit levels by $23 billion over the next two years. Although the agreement was reached in record time, Standard & Poor’s credit ratings agency decided to lower the U.S. growth forecast due to federal spending cuts. "We've lowered our forecast for U.S. GDP growth in light of the additional sequester spending cuts in 2014 as well as the potential for another political standoff in Washington after the October government shutdown," S&P said Monday, ahead of the budget deal.
The U.S. stock market suffered its largest loss in over a month due to the budget deal reached by Congress. The news was analyzed by investors who assume that the U.S. Federal Reserve will automatically have even more reason to taper its monthly $85 billion bond buying program sooner rather than later. The Fed could make an announcement as early as next week during their December 17-18 policy meeting.
At 5:05 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,254.30, Down $9.30.
- Silver, $20.34, Down $0.03.
- Platinum, $1,386.10, Down $4.60.
- Palladium, $738.00, Down $0.40.
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