Gold Spot Price Open: $1,277
Gold Spot Price Close: $1,284
Change in Gold Spot Price: +$7
Silver Spot Price Open: $21.47
Silver Spot Price Close: $21.45
Change in Silver Spot Price: -$0.02
Gold and silver had better days on Tuesday as investor anxiousness is quickly building. At the end of the day, gold picked up about 7 dollars while silver stayed about even on the day, losing only about 2 cents.
Late yesterday, there were some reports making their rounds that Congress was on the verge of reaching a deal in regards to either the budget, the debt ceiling, or perhaps both. However, much like the talks between Obama and Congressional leaders about a temporary raising of the debt ceiling this past weekend, the potential of Congress reaching any sort of deal today fell apart almost as soon as the day began.
House Republicans introduced a new bill in regards to the debt ceiling and budget, one that essentially derailed any hope that a deal would be reached today. Now, thanks to this new bill, the possibility of a deal being reached seems as far-fetched as ever.
Officially, the US is set to reach the debt ceiling this Thursday, a situation no one anticipated happening. Regardless of this increasingly possible scenario, it is a persisting belief that Congress will reach some sort of deal before the clock strikes midnight on the debt ceiling. Even if that is the case, a raising of the debt ceiling does not necessarily translate into a budget deal being reached which means that over 800,000 government employees are still out of work.
If Thursday rolls around and a budget deal is still not reached, the US is taking a big risk in regards to their credit rating. Not only that, but the world marketplace may begin to panic. If this occurs, it is likely that safe-haven demand for precious metals will increase, and thus, so too will spot prices. There is still a lot of time left until Thursday, meaning Congress still has some time to pull this one back from the death.
