Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
How Long Does it take for a 10%+ Stock Market Correction to Make New Highs - 21st Apr 18
Sheffield Ruling Labour Party Could Lose 10 Council Seats at May Local Elections - 21st Apr 18
Crude Oil Price Trend Forecast - Saudi Arabia $80 ARAMCO Stock IPO Target - 21st Apr 18
Gold Price Nearing Bull Market Breakout, Stocks to Follow - 20th Apr 18
What’s Bitcoin Really Worth? - 20th Apr 18
Stock Market May "Let Go" - 20th Apr 18
Overwhelming Evidence Against Near Stock Market Grand Supercycle Top - 20th Apr 18
Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - 20th Apr 18
The Incredible Silver Trade – What You Need to Know - 20th Apr 18
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

Gold Records 5.7% Annual Gain for 2012, Still No Deal on Fiscal Cliff

Commodities / Gold and Silver 2012 Dec 31, 2012 - 06:31 AM GMT

By: Ben_Traynor

Commodities

WHOLESALE gold bullion prices touched their highest level since Christmas at $1669 an ounce during Monday morning's London session, before easing slightly towards lunchtime to record a 5.7% gain for 2012 at the final gold fix of the year.

Silver failed to hold gains from Asian trading, falling back towards $30 an ounce.


Major European stock markets ticked lower this morning following news that no deal has been done in Washington to avoid the so-called fiscal cliff. An exception was France's CAC 40 Index, which rose following news of a setback to the French government's plans to raise taxes on the wealthy.

Oil prices edged lower meantime, falling for the third day in a row, amid concerns the US economy is about to see automatic tax rises and cuts in government spending which could threaten a new recession.

"[The Republicans] say that their biggest priority is making sure that we deal with the deficit in a serious way," President Obama told Sunday's edition of NBC's Meet the Press.

"But the way they're behaving is that their only priority is making sure that tax breaks for the wealthiest Americans are protected."

"Americans elected President Obama to lead, not cast blame," countered John Boehner, Republican speaker of the House of Representatives.

"The president's comments are ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party."

If the two sides fail to agree a deal by tomorrow on how to tackle the budget deficit, automatic tax rises and spending cuts worth around $600 billion will come into effect.

"Some investors are looking through this in the hope that politicians can find a middle ground that will allow the increasing momentum in the economy not to be impeded," says Tim Schroeders, who helps manage $1 billion at Pengana Capital in Melbourne.

"It's disappointing that politics has got in the way to such an extent, with investors becoming increasingly nervous that this will drag on into the new year."

"Gold and silver will...find near-term support amid ebbing haven demand for the US Dollar," says a note from analysts at Swiss refiner MKS.

"But one should be cautious when an agreement is reached," they add, noting that this could be followed by "a sharp downtick".

Over in Europe, the French government will press ahead with plans to introduce a 75% tax rate for the wealthy, the country's finance minister has said, despite France's constitutional council ruling against the measures on Saturday.

"We are in a period of crisis...it is logical that the wealthiest should make a contribution at this time," Pierre Moscovici told the Financial Times, adding that the council's ruling was technical rather than fundamental.

Manufacturing growth in China meantime accelerated in December, according to HSBC's purchasing manager's index, which hit its highest level since April 2011 this month (a figure above 50 indicates increased sector activity during the month).

The final London gold fix of 2012 on Monday morning was $1664 an ounce – an annual gain of 5.7%.

Gold in Euros traded at €1261.56 an ounce at the time of the fix – up 3.7% on the year – while gold in Sterling ended the year up 0.9% at £1029.32 an ounce.

By Ben Traynor
BullionVault.com

Gold price chart, no delay   |   Buy gold online at live prices

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.(c) BullionVault 2012

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Ben Traynor Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules