Gold Spot Price Open: $1,697
Gold Spot Price Close: $1,672
Change in Gold Spot Price:-$25
Silver Spot Price Open: $32.19
Silver Spot Price Close: $31.68
Change in Silver Spot Price:-$0.51
Technical selling was the main culprit behind why gold and silver slipped a significant amount on Tuesday. After not doing too terribly on Monday, precious metals took a nose dive on Tuesday to hit a 3 and a half month low. Gold dropped about 25 dollars while silver dropped a half dollar.
After more meetings occurred in Washington DC to see if both Democrats and Republicans can come to an agreement on how to avoid the impending fiscal cliff, it seems as though a breakthrough may have happened. House Speaker Boehner announced that there is a possibility of a “Plan B” that will alleviate or perhaps eliminate the effect of the fiscal cliff. Progress still needs to be made on this front but the news, while good for the average American citizen, is a bit more disheartening to precious metals investors.
The commodities market was hurt from another direction on Tuesday because China cancelled a large order of Soybeans from the US. A cancelled soybean order may not seem like a big deal to most people, but to some investors it signifies a possible decrease in China’s want for American commodities, in this case soybeans.
With gold and silver at an almost 4 month low it is a great time to buy as troughs such as this do not typically last for an extended period of time.
