Morning Gold & Silver Market Report – 12/10/2012

Nicholas Wilsey

12/10/2012 8:05:00 AM

GOLD STARTS WEEK UP; FISCAL CLIFF FINGER POINTING

This week is starting well for Gold prices. As of this morning Gold is on the way up thanks to the United States Federal Reserve’s upcoming meetings on Tuesday and Wednesday of this week. There are rumors that a new round of monetary easing will be announced. “Market expectation is that there could be more quantitative easing towards the end of the month, and this will be supportive of Gold,” Lynette Tan, an analyst at Philip Futures in Singapore, said. As with prior easing measures, the Precious Metals markets tend to show a positive gain.

In Italy the economic and political news is in disarray. Ex-Prime Minister Silvio Berlusconi was removed from office under a cloud of fraud and other improper behavior in 2011. However, only one year removed from office, there is talk of a Berlusconi comeback. Italy is facing a possible recession, and the former leader feels inclined to step in. “The situation today is much worse than it was a year ago when I left the government out of a sense of responsibility and a love for my country. I cannot let my country fall into a recessive spiral without end. It's not possible to go on like this,” Berlusconi said. It is yet to be seen if this move back into the spotlight will help or hinder the Italian recovery process.

As the end of the year inches ever closer, so does the United States fiscal cliff. With a deadline looming over the heads of the government, the blame game is in full affect. The two main parties have not seen eye to eye on many things during the budget talks, and now due to time constraints, it is getting more heated than ever. Each side is busy pointing the finger at the other party across the aisle, and time is slipping away to get a deal completed.

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

• Gold, $1716.80, Up $11.30.
• Silver, $33.42, Up $0.31.
• Platinum, $1616.70, Up $18.70.
• Palladium, $701.50, Up $3.50.

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