Morning Gold & Silver Market Report – 11/7/2012

Ryan Schwimmer

11/7/2012 8:02:00 AM

GOLD PRICE JUMPS AFTER OBAMA WIN

The Gold price is giving up some early gains it enjoyed after President Barack Obama won a second term in the White House last night. Though the election is over, important issues are far from ending. Next up on the docket is the fiscal cliff at the end of the year. The President is now tasked with reaching a deal with a Republican-held House of Representatives, which is exactly the scenario that proved nearly impossible to solve over the past year or so. One analyst said, “I personally believe this will get sorted, but not after a lot of haggling and negotiating and this will create a lot of uncertainty and volatility in the markets.”

Early this morning, Fitch Ratings said in a statement, “The economic policy challenge facing the President is to put in place a credible deficit-reduction plan necessary to underpin economic recovery and confidence in the full faith and credit of the U.S. Resolution of these fiscal policy choices would likely result in the U.S. retaining its AAA status from Fitch.” Last year, credit ratings agency Standard & Poor’s downgraded the U.S. from its AAA status, which carried the Gold price to a record high.

In Europe, Greek workers have begun a two day strike to protest further austerity measures being implemented via a parliamentary vote today. The five-year recession that has gutted the country is poised to continue if the measures are passed, according to the opposition. Jean Claude Junker, chairman of the Eurogroup of eurozone finance ministers, believes otherwise. He said, “Our Greek friends have no options or choice. They have to do it. And my impression is that the reforms which are being undertaken in Greece are increasingly better understood by the Greek citizens.”

At 9 a.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,728.00, Up $11.50.
• Silver, $32.13, Up $0.06.
• Platinum, $1,560.50, Up $3.70.
• Palladium, $619.50, Down $1.60.

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