Closing Gold & Silver Market Report – 9/25/2012

Nicholas Wilsey

9/25/2012 4:02:00 PM

GOLD STAYS STEADY; U.S.A. FISCAL CLIFF INCHES CLOSER

Today’s Gold prices remained relatively flat for the majority of the day. The main reason for the calm is quite simple; there has been a lack of financial news to push the market in either direction. One piece of news that has been gaining attention is the amount of Gold that countries have been adding to their central banking systems. South Korea and Paraguay lead all other countries by adding more than 24 tons of Gold to their reserves in July alone. "Whether you're looking at physical flows into ETFs or the options market, activity has clearly been on the bullish side, and that will see prices move higher as we go through the fourth quarter,'' said Credit Suisse analyst Tom Kendall.

There has been a lot of finger-pointing between the European Central Bank and the governments in the European Union, which leaders say should bear the responsibility of cleaning up the financial mess in the region. "Our policies can only be the bridge toward a more stable future… governments must undertake more fundamental measures," European Central Bank President Mario Draghi said today. All sides agree it must be a group effort to succeed. Now the task is to get the group to work together, which has yet to happen.

The term "fiscal cliff" has been in the news quite often in the United States in the past few months. Due to the political split in Washington D.C. there has been a stalemate in budget talks. There are spending and tax measures set to expire at the end of the year, and if there is no compromise reached, it could have significant affects throughout the global economic landscape. "The level of political partisanship in Washington is higher than it's ever been, and that it is making it much harder to deal sensibly with some of the economic and other problems America is facing," said Xenia Dormandy, a senior fellow at Chatham House.

At 5 pm (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1761.70, Down $1.90.
• Silver, $33.81, Down $0.19.
• Platinum, $1629.20, Up $6.20.
• Palladium, $638.40, Down $7.10.

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