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Market Nuggets: Triland: Silver Top-Performing Precious Metal After Fiscal-Cliff Deal

Wednesday January 2ed, 2013 1:38 PM

Silver has been the biggest gainer in the precious-metals complex after U.S. lawmakers reached an agreement on taxes but delayed other decisions such as the debt ceiling and government spending. Shortly before the Comex pit close, March silver was 95.3 cents, or 3.2%, stronger at $31.18. “The kicking of the fiscal cliff can down the road for two months has induced a risk-on rally across the globe,” says Triland Metals. The firm later adds: “Silver has been the main mover today with physical and speculative buyers evident, but as with gold on low volume.” Chart support was between put $29.50 and $29.75 and between $32 and $32.25. For February gold, support is seen between $1,670 to $1,675 and resistance around $1,695 and $1,700.

By Allen Sykora of Kitco News asykora@kitco.com

 

Market Nuggets: BBH: Markets Breathe ‘Sigh Of Relief’ After Fiscal Cliff Deal

Wednesday January 2ed, 2013 8:57 AM

Markets generally seem to be breathing “a collective sigh of relief” as the full impact of any U.S. fiscal cliff has been averted, says Brown Brothers Harriman. Lawmakers struck a deal to avoid large-scale tax hikes.  “However, the results do not seem particularly satisfactory as the debt ceiling and spending cut decisions have been postponed for several weeks,” BBH says. “The euro reached $1.33 in Asia and the dollar moved to a high just shy of JPY87.35 before consolidating in the European morning.” As of 8:48 a.m. EST, the euro was up to $1.3255 from $1.3201 late Monday. The March S&P 500 futures were 27.60 points stronger at 1,447.70, Nymex February crude oil was up $1.58 to $93.40 a barrel and all of the base metals were stronger, with LME copper up $277.50 to 8,208.50 a metric ton. The base metals were all higher as well, with Comex February gold up $13 to $1,688.80 an ounce.

By Allen Sykora of Kitco News asykora@kitco.com

 

Market Nuggets: Gartman Adds To Gold Position

Wednesday January 2ed, 2013 8:40 AM

Gold prices are rising and the gains are seen in all currencies, including the U.S. dollar, Japanese yen and euro, which is a bullish sign, says newsletter editor Dennis Gartman. He writes that he is adding to his gold-yen position because of the strength in the metal. “We are and we have been bullish of gold for quite some long while and the decisions arrived at by the U.S. Congress (regarding the fiscal cliff), and the policies in place by the Fed and by the Ministry of Finance in Japan, shall serve to strengthen gold generally but shall clearly serve to strengthen gold in yen terms specifically. As we write, gold/yen is trading ¥146,800/oz., and that is a new multiyear high. We’ve no real choice but to add to our gold/yen position this morning and so we shall do so immediately,” he says.

By Debbie Carlson of Kitco News dcarlson@kitco.com

 

Market Nuggets: Gold Prices Could Rise After U.S. Congress Unable To Settle On Spending Cuts – INTL FCStone

Wednesday January 2ed, 2013 8:40 AM

The U.S. Congress agreed to some modest tax changes to avoid going over the “fiscal cliff,” but decisions on spending cuts are put off for another two months, which will likely lead to further political squabbling, says Edward Meir, commodities consultant at INTL FCStone. “Whatever happens in Washington, we suspect gold will likely do better over the next few weeks as the colossal failure of political will to get America’s fiscal house in order should provide fodder for the gold bugs to bid prices higher… For the record, gold jumped by $20/ounce on the last trading day of 2012 to finish up 6% on the year, while more importantly, it chalked up its 12th annual advance in 2012, the longest consecutive gain for any commodity. Odds are good that we will see a 13th year of gains,” Meir says. At 8:10 a.m. EST, Comex March gold is up $11.10 at $1,668 an ounce.

By Debbie Carlson of Kitco News dcarlson@kitco.com

 

Market Nuggets: Silver Prices Vulnerable To Weakness – INTL FCStone

Wednesday January 2ed, 2013 8:40 AM

Comex silver prices are firmer in early dealings, but Edward Meir, commodities consultant at INTL FCStone, says the metal is vulnerable to weakness.  “Silver closed below $30.70 support … and also broke the longer-term trendline that stems back to last July. Silver looks to be the weakest in the precious group and could work lower, possibly down to the $28 level in the next downdraft,” he says. At 8:01 a.m. EST, March Comex silver is up $1.148 to $31.375 an ounce.

By Debbie Carlson of Kitco News dcarlson@kitco.com

 

Market Nuggets: Falling Off ‘Fiscal Cliff’ Partially Avoided, But ‘Hard Part’ Remains – Nomura

Wednesday January 2ed, 2013 8:40 AM

Congress extended the Bush tax cuts for most taxpayers and reprogrammed the composition of the Budget Control Act of 2011 spending cuts, which Nomura calls “the easy part” of dealing with the fiscal cliff. “Now a new Congress will have to tackle the hard part, i.e., reduce long-term spending, raise additional revenue and increase the debt limit,” they say. The firm says the current deal increases payroll taxes and cuts federal spending by the amount anticipated in the BCA, which will be a drag on growth.  The next debate will be over the debt limit, which will be even more contentious than these past negotiations. Republicans want an increase that is matched, one-for-one, with spending cuts, which would be $1.5 trillion, “a demanding standard,” Nomura says. “In previous negotiations, neither side has identified cuts of that magnitude.” President Obama wants any future deficit reduction deal to be “balanced” where spending cuts are paired with additional revenues. “The upcoming debate will focus exclusively on the politically difficult choices that have to be made to achieve fiscal consolidation over the medium term. Given the fractured nature of U.S. politics, there is no guarantee of success,” Nomura says.

By Debbie Carlson of Kitco News dcarlson@kitco.com

 

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