Morning Gold & Silver Market Report – 1/2/2013

Ryan Schwimmer

1/2/2013 8:01:00 AM

NEXT RUN-IN WITH DEBT CEILING IS NEXT MONTH

Lawmakers passed a bill to extend tax cuts and temporarily raise the debt ceiling late last night, and U.S. stock futures and Precious Metals are enjoying a boost from this decision. However, the U.S. economy isn’t quite out of the woods yet. Fawad Razaqzada of GFT Markets said, “The focus will quickly shift toward the end of February when the U.S. is expected to hit its debt ceiling. It’s difficult to be sure of the market’s reaction because a lot of traders are away at the moment and volumes are light, so any moves are likely to be exaggerated slightly.”

The Gold price rose to a two-week high amid the news. Saxo Bank Vice President Ole Hansen said, “The deal does not seem like a long term durable solution to the U.S. debt, but it’s given the Gold market the excuse to move higher, helped by the dollar.” If Gold is mainly trading on the softer dollar at the moment, many eyes will start to focus on the end of February for more direction.

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

• Gold, $1,689.50, Up $13.20.
• Silver, $31.34, Up $1.10.
• Platinum, $1,573.90, Up $32.50.
• Palladium, $714.50, Up $10.20.

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