How the Fiscal Cliff Will Affect Gold Prices Now
Tags: avoid fiscal cliff effects, current gold price, current gold prices, fiscal cliff, fiscal cliff 2013, fiscal cliff bargaining, fiscal cliff deal 2013, fiscal cliff definition, fiscal cliff impact on gdp, fiscal cliff sequestration, fiscal cliff stocks to buy, Gold Prices, gold prices per ounce, gold prices today, gold stocks, How fiscal cliff will affect [...]
On news of a second term for U.S. President Barack Obama, investors didn't show any excitement as the market fell 2.3% the day after Election 2012.
The fiscal cliff countdown has come to the forefront of concerns this week, helping push the Dow Jones Industrial Average down more than 2% since last Friday.
But for gold prices, this could be a good thing.
Here's how the fiscal cliff will affect gold prices as Washington battles over how to solve the looming threat to the U.S. economy.
The Fiscal Cliff Effect on Gold Prices David Hemming, a portfolio manager at Hermes Investment Management Ltd. said to Bloomberg News, "The U.S. fiscal cliff has short-term implications for commodities. Considering the concern is with the U.S. and it would be bearish for the dollar, gold should outperform as both a currency and a safe haven. The industrial metals have potential for further downside, but other than copper they are trading into their cost curves."
The ball got rolling last week as fears drove gold futures on the Comex up 3.3% for the week-its largest gain since January. On Wednesday, Comex December gold futures were up $5.30 to $1,730.
What helped push gold higher was a speech from President Obama. He said should lawmakers not reach an agreement on the outstanding fiscal issues by year's end, middle-class tax hikes could result in a recession.
This could also result in additional easing and greater inflation, which benefits gold prices.
Gold Price Forecasts Tom Winmill of the Midas Fund sees a gold craze with a year-end $1900 an ounce gold price as it "figures largely in the next quarter."
Looking to past behavior for perspective, Winmill noted to Fox Business News that in the "mini" fiscal cliff just over a year ago, along with the debt ceiling, there was a 30% gold price rise and "we should see that again."
He added that in the big picture, the current economy is a positive for hard assets, including gold. Furthermore, Winmill believes that even with a deal by Congress on the fiscal cliff, one year from now he predicts a $2,200 an ounce for gold prices.
READ: For everything you need to know on how to invest in gold, click here.body #pp-popup-50a534f226437 div,body #pp-popup-50a534f226437 dl,body #pp-popup-50a534f226437 dt,body #pp-popup-50a534f226437 dd,body #pp-popup-50a534f226437 ul,body #pp-popup-50a534f226437 ol,body #pp-popup-50a534f226437 li,body #pp-popup-50a534f226437 h1,body #pp-popup-50a534f226437 h2,body #pp-popup-50a534f226437 h3,body #pp-popup-50a534f226437 h4,body #pp-popup-50a534f226437 h5,body #pp-popup-50a534f226437 h6,body #pp-popup-50a534f226437 pre,body #pp-popup-50a534f226437 code,body #pp-popup-50a534f226437 form,body #pp-popup-50a534f226437 fieldset,body #pp-popup-50a534f226437 legend,body #pp-popup-50a534f226437 input,body #pp-popup-50a534f226437 textarea,body #pp-popup-50a534f226437 p,body #pp-popup-50a534f226437 blockquote,body #pp-popup-50a534f226437 th,body #pp-popup-50a534f226437 td{margin:0;padding:0;line-height:normal;}body #pp-popup-50a534f226437 table{border-collapse:collapse;border-spacing:0;}body #pp-popup-50a534f226437 fieldset,body #pp-popup-50a534f226437 img{border:0;}body #pp-popup-50a534f226437 address,body #pp-popup-50a534f226437 caption,body #pp-popup-50a534f226437 cite,body #pp-popup-50a534f226437 code,body #pp-popup-50a534f226437 dfn,body #pp-popup-50a534f226437 em,body #pp-popup-50a534f226437 strong,body #pp-popup-50a534f226437 th,body #pp-popup-50a534f226437 var{font-style:normal;font-weight:normal;}body #pp-popup-50a534f226437 li{list-style:none;}body #pp-popup-50a534f226437 caption,body #pp-popup-50a534f226437 th{text-align:left;}body #pp-popup-50a534f226437 h1,body #pp-popup-50a534f226437 h2,body #pp-popup-50a534f226437 h3,body #pp-popup-50a534f226437 h4,body #pp-popup-50a534f226437 h5,body #pp-popup-50a534f226437 h6{font-size:100%;font-weight:normal;}body #pp-popup-50a534f226437 q:before,body #pp-popup-50a534f226437 q:after{content:'';}body #pp-popup-50a534f226437 abbr,body #pp-popup-50a534f226437 acronym{border:0;font-variant:normal;}body #pp-popup-50a534f226437 sup{vertical-align:text-top;}body #pp-popup-50a534f226437 sub{vertical-align:text-bottom;}body #pp-popup-50a534f226437 input,body #pp-popup-50a534f226437 textarea,body #pp-popup-50a534f226437 select{font-family:inherit;font-size:inherit;font-weight:inherit;}body #pp-popup-50a534f226437 input,body #pp-popup-50a534f226437 textarea,body #pp-popup-50a534f226437 select{*font-size:100%;}body #pp-popup-50a534f226437 legend{color:#000;}body #pp-popup-50a534f226437 del,body #pp-popup-50a534f226437 ins{text-decoration:none;} body #pp-popup-50a534f226437 h1{font-size:138.5%;}body #pp-popup-50a534f226437 h2{font-size:123.1%;}body #pp-popup-50a534f226437 h3{font-size:108%;}body #pp-popup-50a534f226437 h1,body #pp-popup-50a534f226437 h2,body #pp-popup-50a534f226437 h3{margin:1em 0;}body #pp-popup-50a534f226437 h1,body #pp-popup-50a534f226437 h2,body #pp-popup-50a534f226437 h3,body #pp-popup-50a534f226437 h4,body #pp-popup-50a534f226437 h5,body #pp-popup-50a534f226437 h6,body #pp-popup-50a534f226437 strong{font-weight:bold;}body #pp-popup-50a534f226437 abbr,body #pp-popup-50a534f226437 acronym{border-bottom:1px dotted #000;cursor:help;}body #pp-popup-50a534f226437 em{font-style:italic;}body #pp-popup-50a534f226437 del{text-decoration:line-through;}body #pp-popup-50a534f226437 blockquote,body #pp-popup-50a534f226437 ul,ol,body #pp-popup-50a534f226437 dl{margin:1em;}body #pp-popup-50a534f226437 ol,body #pp-popup-50a534f226437 ul,dl{margin-left:2em;}body #pp-popup-50a534f226437 ol li{list-style:decimal outside;}body #pp-popup-50a534f226437 ul li{list-style:disc outside;}body #pp-popup-50a534f226437 dl dd{margin-left:1em;}body #pp-popup-50a534f226437 th,body #pp-popup-50a534f226437 td{border:1px solid #000;padding:.5em;}body #pp-popup-50a534f226437 th{font-weight:bold;text-align:center;}body #pp-popup-50a534f226437 caption{margin-bottom:.5em;text-align:center;}p,body #pp-popup-50a534f226437 fieldset,table,body #pp-popup-50a534f226437 pre{margin-bottom:1em;}body #pp-popup-50a534f226437 input[type=text],body #pp-popup-50a534f226437 input[type=password],body #pp-popup-50a534f226437 textarea{width:12.25em;*width:11.9em;} jPPUI('#pp-link-50a534f226437').data('options', {"ID":"70925","options":{"width":"480","height":"280","shadow":false,"background":"#ffffff","noTitle":true,"frameColor":"#aaaaaa","frameSize":0,"borderRadius":"0","closeOnEscape":false,"closeOnOuterClick":false,"closeBtnX":true,"affiliate":false,"modal":true,"overlay":true,"overlayColor":"#2f2727","overlayTransparency":50,"sticky":true,"webroot":"http:\/\/moneymorning.com\/wp-content\/plugins\/platinumpopup","draggable":false,"frameStyle":"solid","closeOnMouseLeave":false,"ID":"50a534f226437"},"title":"Gated Content Popups (one liners)","content":"<div id=\"ppopup-50a534f226437\" class=\"ppopup\"><div class=\"widget cfox_preload\"><div class=\"cfox_preload_widget\"><\/div><\/div><\/div>"});
And while the fiscal cliff will push gold prices higher in the near-term, there's also those global factors still affecting them.
China's economy continues to make strides in its economic road to recovery based on October data. Philip Klapwijk, global head of metals at consultancy Thomson Reuters GFMS, said last week that the country's gold demand is expected to grow by 1% in 2012 to a record 860 tons.
Gold jewelry investment sales are also expected to rise.
And with this will come higher gold prices.
For a full analysis on how President Obama's second term affects gold prices, check out this report by our Executive Editor William Patalon III..
Related Articles and News:
Tags: avoid fiscal cliff effects, current gold price, current gold prices, fiscal cliff, fiscal cliff 2013, fiscal cliff bargaining, fiscal cliff deal 2013, fiscal cliff definition, fiscal cliff impact on gdp, fiscal cliff sequestration, fiscal cliff stocks to buy, Gold Prices, gold prices per ounce, gold prices today, gold stocks, How fiscal cliff will affect gold prices, how to stop the fiscal cliff, how will fiscal cliff effect gold, how will fiscal cliff effect stocks and bonds, how will the fiscal cliff affect me, how will the fiscal cliff effect my investments, how will the fiscal cliff impact europe, investing for the fiscal cliff, investing in gold, price of gold, the fiscal cliff 2013, what caused the fiscal cliff, what is the fiscal cliff, when do we hit fiscal cliff, when is fiscal cliff
But for gold prices, this could be a good thing.
Here's how the fiscal cliff will affect gold prices as Washington battles over how to solve the looming threat to the U.S. economy.
The Fiscal Cliff Effect on Gold Prices David Hemming, a portfolio manager at Hermes Investment Management Ltd. said to Bloomberg News, "The U.S. fiscal cliff has short-term implications for commodities. Considering the concern is with the U.S. and it would be bearish for the dollar, gold should outperform as both a currency and a safe haven. The industrial metals have potential for further downside, but other than copper they are trading into their cost curves."
The ball got rolling last week as fears drove gold futures on the Comex up 3.3% for the week-its largest gain since January. On Wednesday, Comex December gold futures were up $5.30 to $1,730.
What helped push gold higher was a speech from President Obama. He said should lawmakers not reach an agreement on the outstanding fiscal issues by year's end, middle-class tax hikes could result in a recession.
This could also result in additional easing and greater inflation, which benefits gold prices.
Gold Price Forecasts Tom Winmill of the Midas Fund sees a gold craze with a year-end $1900 an ounce gold price as it "figures largely in the next quarter."
Looking to past behavior for perspective, Winmill noted to Fox Business News that in the "mini" fiscal cliff just over a year ago, along with the debt ceiling, there was a 30% gold price rise and "we should see that again."
He added that in the big picture, the current economy is a positive for hard assets, including gold. Furthermore, Winmill believes that even with a deal by Congress on the fiscal cliff, one year from now he predicts a $2,200 an ounce for gold prices.
READ: For everything you need to know on how to invest in gold, click here.body #pp-popup-50a534f226437 div,body #pp-popup-50a534f226437 dl,body #pp-popup-50a534f226437 dt,body #pp-popup-50a534f226437 dd,body #pp-popup-50a534f226437 ul,body #pp-popup-50a534f226437 ol,body #pp-popup-50a534f226437 li,body #pp-popup-50a534f226437 h1,body #pp-popup-50a534f226437 h2,body #pp-popup-50a534f226437 h3,body #pp-popup-50a534f226437 h4,body #pp-popup-50a534f226437 h5,body #pp-popup-50a534f226437 h6,body #pp-popup-50a534f226437 pre,body #pp-popup-50a534f226437 code,body #pp-popup-50a534f226437 form,body #pp-popup-50a534f226437 fieldset,body #pp-popup-50a534f226437 legend,body #pp-popup-50a534f226437 input,body #pp-popup-50a534f226437 textarea,body #pp-popup-50a534f226437 p,body #pp-popup-50a534f226437 blockquote,body #pp-popup-50a534f226437 th,body #pp-popup-50a534f226437 td{margin:0;padding:0;line-height:normal;}body #pp-popup-50a534f226437 table{border-collapse:collapse;border-spacing:0;}body #pp-popup-50a534f226437 fieldset,body #pp-popup-50a534f226437 img{border:0;}body #pp-popup-50a534f226437 address,body #pp-popup-50a534f226437 caption,body #pp-popup-50a534f226437 cite,body #pp-popup-50a534f226437 code,body #pp-popup-50a534f226437 dfn,body #pp-popup-50a534f226437 em,body #pp-popup-50a534f226437 strong,body #pp-popup-50a534f226437 th,body #pp-popup-50a534f226437 var{font-style:normal;font-weight:normal;}body #pp-popup-50a534f226437 li{list-style:none;}body #pp-popup-50a534f226437 caption,body #pp-popup-50a534f226437 th{text-align:left;}body #pp-popup-50a534f226437 h1,body #pp-popup-50a534f226437 h2,body #pp-popup-50a534f226437 h3,body #pp-popup-50a534f226437 h4,body #pp-popup-50a534f226437 h5,body #pp-popup-50a534f226437 h6{font-size:100%;font-weight:normal;}body #pp-popup-50a534f226437 q:before,body #pp-popup-50a534f226437 q:after{content:'';}body #pp-popup-50a534f226437 abbr,body #pp-popup-50a534f226437 acronym{border:0;font-variant:normal;}body #pp-popup-50a534f226437 sup{vertical-align:text-top;}body #pp-popup-50a534f226437 sub{vertical-align:text-bottom;}body #pp-popup-50a534f226437 input,body #pp-popup-50a534f226437 textarea,body #pp-popup-50a534f226437 select{font-family:inherit;font-size:inherit;font-weight:inherit;}body #pp-popup-50a534f226437 input,body #pp-popup-50a534f226437 textarea,body #pp-popup-50a534f226437 select{*font-size:100%;}body #pp-popup-50a534f226437 legend{color:#000;}body #pp-popup-50a534f226437 del,body #pp-popup-50a534f226437 ins{text-decoration:none;} body #pp-popup-50a534f226437 h1{font-size:138.5%;}body #pp-popup-50a534f226437 h2{font-size:123.1%;}body #pp-popup-50a534f226437 h3{font-size:108%;}body #pp-popup-50a534f226437 h1,body #pp-popup-50a534f226437 h2,body #pp-popup-50a534f226437 h3{margin:1em 0;}body #pp-popup-50a534f226437 h1,body #pp-popup-50a534f226437 h2,body #pp-popup-50a534f226437 h3,body #pp-popup-50a534f226437 h4,body #pp-popup-50a534f226437 h5,body #pp-popup-50a534f226437 h6,body #pp-popup-50a534f226437 strong{font-weight:bold;}body #pp-popup-50a534f226437 abbr,body #pp-popup-50a534f226437 acronym{border-bottom:1px dotted #000;cursor:help;}body #pp-popup-50a534f226437 em{font-style:italic;}body #pp-popup-50a534f226437 del{text-decoration:line-through;}body #pp-popup-50a534f226437 blockquote,body #pp-popup-50a534f226437 ul,ol,body #pp-popup-50a534f226437 dl{margin:1em;}body #pp-popup-50a534f226437 ol,body #pp-popup-50a534f226437 ul,dl{margin-left:2em;}body #pp-popup-50a534f226437 ol li{list-style:decimal outside;}body #pp-popup-50a534f226437 ul li{list-style:disc outside;}body #pp-popup-50a534f226437 dl dd{margin-left:1em;}body #pp-popup-50a534f226437 th,body #pp-popup-50a534f226437 td{border:1px solid #000;padding:.5em;}body #pp-popup-50a534f226437 th{font-weight:bold;text-align:center;}body #pp-popup-50a534f226437 caption{margin-bottom:.5em;text-align:center;}p,body #pp-popup-50a534f226437 fieldset,table,body #pp-popup-50a534f226437 pre{margin-bottom:1em;}body #pp-popup-50a534f226437 input[type=text],body #pp-popup-50a534f226437 input[type=password],body #pp-popup-50a534f226437 textarea{width:12.25em;*width:11.9em;} jPPUI('#pp-link-50a534f226437').data('options', {"ID":"70925","options":{"width":"480","height":"280","shadow":false,"background":"#ffffff","noTitle":true,"frameColor":"#aaaaaa","frameSize":0,"borderRadius":"0","closeOnEscape":false,"closeOnOuterClick":false,"closeBtnX":true,"affiliate":false,"modal":true,"overlay":true,"overlayColor":"#2f2727","overlayTransparency":50,"sticky":true,"webroot":"http:\/\/moneymorning.com\/wp-content\/plugins\/platinumpopup","draggable":false,"frameStyle":"solid","closeOnMouseLeave":false,"ID":"50a534f226437"},"title":"Gated Content Popups (one liners)","content":"<div id=\"ppopup-50a534f226437\" class=\"ppopup\"><div class=\"widget cfox_preload\"><div class=\"cfox_preload_widget\"><\/div><\/div><\/div>"});
And while the fiscal cliff will push gold prices higher in the near-term, there's also those global factors still affecting them.
China's economy continues to make strides in its economic road to recovery based on October data. Philip Klapwijk, global head of metals at consultancy Thomson Reuters GFMS, said last week that the country's gold demand is expected to grow by 1% in 2012 to a record 860 tons.
Gold jewelry investment sales are also expected to rise.
And with this will come higher gold prices.
For a full analysis on how President Obama's second term affects gold prices, check out this report by our Executive Editor William Patalon III..
Related Articles and News:
- Money Morning:
India's Demand for Gold to Boost Prices Before Festival Season - Money Morning:
What an Obama Win Means for Gold Prices in 2013 - Bloomberg News:
Gold Is Seen Outperforming as Fiscal Cliff to Hurt Metals - Reuters:
Gold rises on oil's gain, Middle East tensions - Fox Business:
Would Resolution of Fiscal Cliff Drive Gold Prices Higher? - CNBC:
Gold Settles Above $1,730; US Fiscal Cliff Dominates
Tags: avoid fiscal cliff effects, current gold price, current gold prices, fiscal cliff, fiscal cliff 2013, fiscal cliff bargaining, fiscal cliff deal 2013, fiscal cliff definition, fiscal cliff impact on gdp, fiscal cliff sequestration, fiscal cliff stocks to buy, Gold Prices, gold prices per ounce, gold prices today, gold stocks, How fiscal cliff will affect gold prices, how to stop the fiscal cliff, how will fiscal cliff effect gold, how will fiscal cliff effect stocks and bonds, how will the fiscal cliff affect me, how will the fiscal cliff effect my investments, how will the fiscal cliff impact europe, investing for the fiscal cliff, investing in gold, price of gold, the fiscal cliff 2013, what caused the fiscal cliff, what is the fiscal cliff, when do we hit fiscal cliff, when is fiscal cliff