Closing Gold & Silver Market Report – 1/10/2012
GOLD ENDS AT FOUR-WEEK HIGH; MORE GRIDLOCK IN U.S.?
The Gold price ended the day at a four-week best, shaking off underperformance from the previous few days. Gold traditionally has a negative correlation with the value of the U.S. dollar, and with the dollar trading lower, Gold closed above $1,630 an ounce, its highest point since Dec. 13. Archer Financial Services analyst Stephen Platt said Gold is being sought by investors who liquidated their stocks toward year’s end. Gold also is being supported by concerns over Iranian threats to close access to the Strait of Hormuz for oil tankers. A note released by Commerzbank to its clients stated that Gold is being supported by markets that are currently “in the grip of the sovereign debt crisis in the eurozone, with auctions of Spanish and Italian government bonds due at the end of the week.” Silver, Platinum, and Palladium prices all ended the day up, as well.
The former chairman of the White House Council of Economic Advisers warned today that the failure of U.S. lawmakers to find common ground on financial legislation in 2011 would continue in 2012. In an interview today, former Chairman Austan Goolsbee predicted there would not be any progress made by Washington political leaders toward clearing up the uncertainty felt by people and businesses in this country. Goolsbee said, “The only thing we can be guaranteed of for this coming year is a whole lot of gridlock, so if that adds uncertainty, I don’t know if there’s a whole lot we can do about that.” According to a survey conducted in November, roughly 61% of U.S. small businesses have had impeded growth caused by uncertainty, with many participants putting the blame on the country’s political climate. Economic battles in the previous year included the fight between Republicans and Democrats over raising the debt ceiling (which resulted in a U.S. credit rating downgrade and ultimately a record high for Gold prices) and the end-of-year debate about extending payroll tax cuts and unemployment benefits.
At 4 p.m. (CST), the APMEX precious metals spot prices were:
- Gold - $1,634.20 – Up $25.10.
- Silver - $30.02 - Up $1.16.
- Platinum - $1,465.90 - Up $37.30.
- Palladium - $636.40 - Up $17.60.