Mid-Day Gold & Silver Market Report – 11/16/2012

Geoffrey Varner

11/16/2012 1:42:00 PM

TALKS BEGIN WITH A POSITIVE TONE

It is still too early to tell, but top congressional Democrats and Republicans both said that Friday’s meeting with the president was constructive. U.S. stocks rallied back from early losses as leaders stood side by side making statements. Republican leaders said they were willing to put revenue on the table to get a deal as the president has insisted that taxes on the wealthy must be included in the final deal. On the other side of that coin, Republican leader John Boehner said, “While we’re going to continue to have revenue on the table, it’s going to be incumbent on my colleagues to show the American people that we’re serious about cutting spending and solving our fiscal dilemma. I believe we can do this and avert the fiscal cliff that is right in front of us today.”

The Gold price is falling today as investors show concern over the global market. Some investors are liquidating bullion for profit to cover losses in other markets such as equities. This action also causes the price of Gold to dip down. Simon Weeks, head of Precious Metals at Scotia Mocatta, said, “Gold is being seen increasingly as a source of cash. Liquidation of Gold can cover losses elsewhere.” However, Gold's safe haven appeal would truly come to the forefront if the U.S. budget talks failed and the world’s largest economy slid back into recession.

At 2:30 p.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,714.80, Down $1.00.
• Silver, $32.33, Down $0.41.
• Platinum, $1,558.50, Down $14.80.
• Palladium, $627.20, Down $5.00.

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