It took the Dow dropping below 13,000 yesterday to influence Washington politicians to make another effort at averting the fiscal cliff, with a surprise announcement that the House would go into special session on Sunday to rescue the stock markets from their plunge. The top four Congressional leaders are scheduled to meet at the White House with President Obama at 3pm Eastern time today in an attempt to broker a last minute deal, but implementation may not come until the new Congress meets on January 3rd.
Markets in both equities and commodities are expected to be thinly traded again today, as Wall St. holds its breath over the negotiations in Washington. The number of gold and silver futures traded have dropped, but physical buying on the dip in prices is still evident. Alex Thorndike, senior trader at MKS Capital says that gold is staying in a short range without any clear external forces: “Short term, we look set to drift between last week’s low crossing at $1635-36 and the February COMEX 200 day moving average, which cuts in around $1667.50.”
Stocks opened sharply lower this morning in New York, while the dollar index is back near yesterday’s close after a surge to 79.92. Spot gold is oscillating between $1,658 and $1,662 an ounce in early COMEX trading, with the price at 9:30am at $1.661.71. Silver at 9:30am was $30.04, platinum at $1,533.00 and palladium at $709.00.