Precious Metals and U.S. stock futures are trading lower across the board as the  jobless claims report showed a jump  to levels not seen in 18 months. Hurricane Sandy is being blamed for the jump in claims. The unemployment rate also rose slightly to 7.9 percent. The next big report on investors’ minds is the second estimate for third-quarter growth, to be released on November 29.

Gold’s safe-haven appeal  could spur buying from investors  who are worried about the fiscal cliff and tensions in the Middle East.  Marcus Grubb of the World Gold Council said, “Against a backdrop of continued global economic uncertainty and elections in China and the U.S., it is clear from five-year rising demand trends that Gold’s fundamental property as a vehicle for capital preservation continues to endure.” Israeli strikes against the Gaza Strip have caused some nerves to heighten, and a Gold dealer in Hong Kong said, “I think sentiment is still bullish because of the tension in the Middle East and also the fiscal cliff. I think the market is looking to touch $1,750, while the downside is $1,720. I don’t think we’re going to break $1,700, unless of course there’s a strong rally in the dollar.”

At 9 a.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,725.50, Down $6.60.
• Silver, $32.73, Down $0.22.

The Dow Jones Industrial Average and S& P 500 continue their downward slide as concerns over the impending “fiscal cliff” punish the stock market. “The fiscal cliff jars the economy at a time when it does not need to be disturbed too much, it's the last thing people want,” Jim Russell, chief equity strategist for U.S. Bank Wealth Management, said. The  Dow plummeted more than 185 points while the S& P slid 19 points, concluding the day with each index at its lowest point since June.Distress is plaguing investors on many fronts these days  as anxiety over European debt, geo-political tension in the middle-east and the ubiquitous worry over the U.S. fiscal cliff persist, leaving individuals desperate for safe investment vehicles.

Despite the massive downturn in equities markets,  Precious Metals prices remained relatively stable today. Gold continues to linger around the $1,730 range as Silver, Platinum and Palladium all retained relatively flat levels. Though there was little movement today, economic analysts remain bullish on the prospect of Gold. Dublin-based Mark O’Byrne, executive director at GoldCore, said, “Positive comments about the ‘fiscal cliff’ may lead to downward pressure on Gold bullion. However, the scale of the fiscal challenges facing President [Barack] Obama and Congress mean that any weakness will likely be short-term.”

At 5 p.m. (EST), the APMEX precious metals spot prices were:

• Gold, $1728.90, Up $2.10.
• Silver, $32.77, Up $0.23.

U.S. stock futures are trading higher this morning, while the Gold price is relatively flat again. The yellow metal’s price continues to be pulled in different directions due to the looming fiscal cliff dilemma. On one hand, investors see Gold as a safe haven, and the uncertainty facing the U.S. in the coming months has those investors concerned. On the other hand, there could be a “liquidity-driven risk event,” according to Daniel Brebner of Deutsche Bank, which would cause investors to cash out of Gold to hold the U.S. dollar.

Disappointing news in the eurozone continues, as a report showed that  factory output in the region fell by the most since January 2009. Germany, normally a strong point for factory output, fell by a substantial amount. Expectations that the eurozone will see another recession (the second in three years) are rampant, and this report only makes it worse. 

At 9 a.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,729.80, Up $3.00.
• Silver, $32.64, Up $0.09.

While the stock market has been falling in fear of the fiscal cliff looming over the United States economy, Gold has moved in a more positive direction,  seeing more than a three percent boost over the past week.  “I think many people feel that the can will continue to get kicked down the road. The outcome of the election seems to show there is not an appetite for major tax increases or meaningful cuts in spending,” said Christopher Blasi, president of Neptune Global Holdings LLC in Wilmington, DE. “So even if there are compromises to avoid the cliff in the short-term, the fundamentals are still there for Gold to keep rallying.”

Today marked the start of a new session of the U.S. Congress and the agenda is clearly focused on the economy. At the end of the calendar year, major tax cuts and spending agreements will come to an abrupt end. There will be no lack of arguments from all parties involved on how to handle the situation.  Even though the deadline is looming, the elected officials seem to be content to go at their own pace.  “We're three weeks away from serious negotiations on the fiscal cliff,” said Greg Valliere, chief political strategist at Potomac Research Group, a Washington policy analysis firm.

In Europe, there are also deadlines to be met, or extended, in the case of Greece. The European Union has given Greece a two year extension to the monetary bailout program.  Without this leeway there was a good chance the country would default and possibly send them out of the union completely.  Greece passed new measures to help with their financial woes however, it is not winning over doubters. “The key risks concern the overall policy implementation, given that the coalition supporting the government appears fragile and some components of the program face political resistance, despite the determination of the government,” said the report by the “troika” made up of the European Commission, European Central Bank and IMF. 

At 5 p.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1726.90, Down $6.00.
• Silver, $32.55, Down $0.04.

Gold and Silver are mostly flat this morning as U.S. stock futures fell. Eurozone leaders did not approve the release of another round of aid to Greece, and the fiscal cliff still looms over the economic horizon in the U.S. at the end of the year. Economists have predicted that if a fiscal cliff deal does not happen before the end of the year, it could  impact gross domestic product to the tune of 5 percent. Sebastian Werner of DWS Investments said, “That’s a disaster for an economy only growing at a 2 percent annual rate.”

Worries about the fiscal cliff and the potential recession it could bring if a deal is not reached could overtake what the euro is doing and have  more of an impact on the Gold price. Precious Metals refiner Heraeus said in a report, “Whilst the uncertainty around the U.S. presidential elections came to an end with Obama’s win, the so-called fiscal cliff is now the omnipresent topic. It describes cutbacks and tax increases in case a budget for new indebtedness cannot be agreed. Due to the strong opposition in Congress, difficult negotiations can be expected and hence new volatility and uncertainty,” which historically have been very supportive of the Gold price.

At 9 a.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,727.50, Down $4.90.
• Silver, $32.53, Down $0.05.

The Precious Metals market is experiencing little movement today due to the holiday. Analysts foresee Gold being supported at the $1,800 level with the fiscal cliff approaching in the next two months. “There is potential for further upside in Gold prices, but it crucially depends on how Wall Street will react,” Peter Fertig, a Quantitative Commodity Research consultant, said. “If economic data in coming weeks comes in stronger than expected,  we could see a re-test of the early-October highs near $1,800.”

The Greek parliament has come to an agreement for new austerity measures in 2013  along with a structural development plan to meet the requirements for the next release of 31.5 billion euros for use as emergency loans for the eurozone. It is still unknown whether Greece will be completely bailed out of its financial crisis as a compliance report by the troika calculated a total of 32.6 billion euros would be needed by 2016 in order to sustain the fiscal disaster. “I'd like to see if Greece has fulfilled all its obligations and then I'd like to hear the (EU/IMF) troika report because it depends on the Greek government having found a solution with the troika, and I haven't read anything on that,” German Finance Minister Wolfgang Schaeuble said.

At 5 p.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,729.40, Down $3.00.
• Silver, $32.46, Down $0.19.