Closing Gold & Silver Market Report – 1/23/2013
GOLD FALLS OFF MONTH HIGHS; DEBT CEILING SUSPENDED UNTIL MID-MAY
Gold is down today following last session’s gains which had boosted the metal to its highest level in one month. Liberal fiscal policy in Japan and a weaker dollar, following disappointing economic data, were the major drivers in Gold’s recent run-up. Though today’s dip was not a major one, Gold is holding more steady than other commodities. “Among the most forex-sensitive commodities, it looked like Gold held up better than oil in the immediate aftermath of the debt ceiling non-event today,” Richard Hastings, a macro strategist at Global Hunter Securities, said. “Gold is still consolidating near the $1,685 level.”
Today the Republican-led House of Representatives approved an extension of the debt ceiling that delays the potential for the U.S. to default on its debt requirements for four months. House Bill H.R. 325 (viewable here) averts a default not by specifying a particular dollar amount to raise the debt ceiling, but by suspending any limits on government borrowing until mid-May, thereby allowing the U.S. to borrow as needed until then in order to meet its financial obligations. The additional debt accrued between now and mid-May will then be retroactively factored into the increase in this country’s borrowing limit. Although there was bipartisan support for the bill, some House members found the short-term nature of the solution to be “irresponsible,” with New Jersey Representative Rob Andrews stating, “This legislation sets up another fiscal cliff, another financial nightmare, another problem for the American people that we should avoid."
At 5 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,687.60, Down $7.60.
- Silver, $32.30, Up $0.09
- Platinum, $1,690.90, Down $10.90.
- Palladium, $727.40, Down $3.50.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EST)! Or call us Fridays until 6 p.m. (EST)! If you have any questions about investing in precious metals or simply would prefer to place your order by telephone, we are here to help.