Mid-Day Gold & Silver Market Report – 12/21/2012
GOLD IS ON THE MOVE; AMERICANS FEELING MORE CONFIDENT IN ECONOMY
Gold neared a four-month low today as the fiscal cliff remains unresolved. Precious Metals prices fell yesterday when U.S. House Speaker John Boehner avoided backing President Barack Obama on fiscal cliff talks. “If there is a timely agreement to avert the fiscal cliff, I think Gold will gain with risk assets,” VTB Capital analyst Andrey Kryuchenkov said. “I think Platinum group metals will outperform Gold, as they have much better supply side fundamentals,” he added.
Americans are trying to focus on the good news rather than the bad as an upcoming fiscal cliff resolution looks uncertain. Consumer spending in November increased as household purchases rose 0.4 percent. As the unemployment rate has improved and jobs are becoming more stable, Americans feel the economy is more secure. “The numbers are encouraging,” said Brian Jones, a senior U.S. economist at Societe Generale in New York. “There’s business that has to get done whether or not these guys iron out this thing in Washington in a timely fashion. We’re going to start the year off slowly and gradually build momentum” because there will probably be a last-minute deal, he said.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,658.50, Up $12.10.
- Silver, $30.18, Up $0.51.
- Platinum, $1,537.80, Down $10.40.
- Palladium, $682.80, Up $2.50.
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