Closing Gold & Silver Market Report – 11/27/2012

Nicholas Wilsey

11/27/2012 4:04:00 PM

GOLD ENDS THE DAY LOWER; ENGLAND LOSING CREDIT

The Gold market has stayed mostly level for the day, ending a bit lower than Monday’s close. One of the main reasons for the decrease has been a rebound in the value of the United States dollar. October’s demand for products such as machinery and electronics went up the most in five months. Another reason is a lower than expected demand from India. India has been the leading in Gold buying, and when their demand goes down, the market feels the affects.

In the United Kingdom, the economy has experienced the same issues that plague the rest of the global economies. The U.K. has a growing budget deficit and slower than anticipated growth. Next week the countries finance minister will give his annual Autumn Statement to show the path which they will follow to progress through the economic turmoil. If a solid plan is not given, there is a strong possibility that England could lose their triple-A credit rating. “The U.K. can only be given the benefit of the doubt for so long. The ratings agencies want to see debt metrics stabilize in the medium term. If fiscal pain is kicked too far
down the road, a downgrade is inevitable,” HSBC’s chief U.K. economist Simon Wells said in a research note.

In the United States, all eyes are fixed on the capitol and the outlook of avoiding the fiscal cliff. News of both sides softening their stance on certain issues has brought hope to the crisis, however, both sides are reportedly far away from a deal. The largest issue seems to be taxes, or lack thereof. “There remains no clarity on the ultimate status on the Bush tax cuts, which have to be resolved before you can move forward with the remainder of the fiscal cliff,” Chris Krueger, an analyst at Guggenheim Securities’ Washington Research Group, said.

At 5 p.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1743.90, Down $7.70.
• Silver, $34.10, Down $0.11.
• Platinum, $1614.20, Up $2.20.
• Palladium, $668.10, Up $6.00.

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