U.S. stock futures are up this morning as markets were buoyed by both economic data out of China and news that Greece has passed a 2013 budget.  Peter Cardillo, chief market economist at Rockwell Global Capital, said, “The news out of China (trade, exports reaching a five-month high) and Greece is positive and may overshadow the fiscal-cliff fear.” It is important for Greece to have passed a budget before the meeting of finance ministers. The budget is a positive sign and a key step in releasing the tranche of aid payments to boost the country’s finances.

Expect the week’s market activity to start off slowly as bond markets are closed Monday for Veterans Day, which could weigh on equity volume as well. Congress and President Barack Obama return tomorrow to begin work on the fiscal cliff. The early economic impact of Superstorm Sandy could start to show up this week as well.  Stuart Freeman, chief U.S. equity strategist with Wells Fargo Advisors, said, “I think we’re just going to bounce around here. We’re kind of sitting at the 200-day moving average (on the S& P), and I think this market, while we’re waiting and watching, is going to be kind of nervous.”

Internationally, Gold is still in high demand, especially from central banks. Barrick Gold Corp, the world’s biggest Gold producer, said demand could hit $2,000 an ounce in 2013. They cited rising costs and production constraints holding supply in check.  Barrick Chief Executive Jamie Sokalsky said, “It's going to be a demand-driven type of move.”

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

• Gold, $1,735.20, Up $2.80.
• Silver, $32.50, Down $0.15.

The price of Gold went up for the fifth session in a row today  as investors wanting to hedge against an uncertain economic future increased their holdings of the yellow metal. Anticipation over the direction of United States monetary policy in the wake of Tuesday’s presidential election, along with fears about the upcoming fiscal cliff, drove Gold to an increase of 3.5 percent this week. According to RBC Capital vice president, George Gero, “Gold is again acting as the haven as ... the fiscal cliff looms, and eurozone woes increase. More Gold buyers are initiating positions going forward.”

There will be an effort to head off the combination of tax increases and spending cuts that make up the fiscal cliff.  President Obama has invited congressional leaders from both parties to talks at the White House next week. The President also expressed an interest in inviting leaders from both labor and business to join the discussion. Although President Obama indicated he was willing to listen to Republican proposals, he stated, “I am not going to ask students and seniors and middle-class families to pay down the entire deficit while people ... making over $250,000 are not asked to pay a dime more in taxes.”

At 5:15 p.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1732.20, Up $4.70. 
• Silver, $32.67, Up $0.38. 

U.S. stock futures, Gold, Silver, and Palladium are all trading relatively flat in early-morning trading.  Michael Gavin of Barclays said, “The primary market focus seems likely to  remain on U.S. politics and the potential for a fiscal-policy accident  in the months to come.”  He added, “Although we maintain our view that the most likely scenario is an eventual resolution of the fiscal cliff … it also seems likely that the resolution will involve a strong element of brinkmanship that may very well create yet more anxiety and market volatility, as in the summer of 2011’s debate of the U.S. debt limit.”

Chen Min of Junrui Futures explained  how investors are feeling about Precious Metals  after the U.S. election.  “They believe the Federal Reserve will further ease the monetary policy to offset whatever impact that will have on the economy, which will be an incentive for Gold and Silver prices to climb up,” he said.  Problems in Greece could be contributing to Gold hitting a three-week high, after a vote to approve the 2013 budget law barely passed.  Greece needs the law in place in order to receive a new round of aid from the eurozone.

At 9:02 a.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,733.60, Up $6.10.
• Silver, $32.23, Down $0.07.

Today investor concern turned in a different direction with the main focus being on global monetary policies.  Gold is on the rise in the aftermath of the U.S. presidential elections. Investors are aware and uneasy with the fiscal cliff approaching us within the next 54 days. “I think with the election behind us, traders and speculators are refocusing on monetary and fiscal policy, and they see these as being positive for Gold and that might be contributing to today's strength,” Jeffrey Nichols, senior economic advisor at Rosland Capital, said.

The devastation of Hurricane Sandy along with the upcoming fiscal cliff is expected to put a hold on the U.S. economy’s recovery. The events are set to possibly create at least two quarters of slow moving growth that could trigger a recession. David Rosenberg, economist and strategist at Gluskin Sheff in Toronto, said, “There's no question that if we get the fiscal cliff that we're going to get recession next year. The only question is how deep.” In order to correct the problem, it is likely politicians will have to come to an agreement on higher taxes and spending cuts, an agreement which proved to be a problem last year.

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

• Gold, $1,733.10, Up $17.60.
• Silver, $32.38, Up $0.67.

The number of people filing for unemployment benefits fell by 8,000 last week however, the effects of Hurricane Sandy are playing a big part in these numbers. One state claims that the loss of electricity because of the storm is suppressing filings. Others are claiming that workers who have lost jobs due to the storm are beginning to file.  The Labor Department spokesperson  admitted that it may take three to four weeks for the full impact of the storm to be realized in the jobless numbers. In an unexpected positive twist, the U.S. trade deficit shrank in September as exports rose. The gap fell to $41.5 billion. This is the smallest the deficit has been since December 2010.

Gold could see a longer term benefit  from the political uncertainty surrounding the fiscal cliff. With nearly $600 billion in spending cuts and tax increases set to kick in, Gold is seen as a safe haven investment.

In overnight trading, U.S. stock futures began the steady climb back after the worst day of the year.  Henrik Drusebjerg, senior strategist at Nordea Bank, said “The market will be very vulnerable to any political comment, whether it’s coming from Democrats or Republicans, and will look at any signs of negotiations being easier or tougher than expected.” His comments point to the impending fiscal cliff and the fact that investors are acutely aware of everything coming out of Washington.

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

• Gold, $1,715.70, Up $0.20.
• Silver, $31.84, Up $0.14.

The  Dow Jones Industrial Average fell more than 312 points  today, making it the largest single-day plunge of 2012. Now that the presidential election results are finalized, investors are shifting their focus towards the United States’ impending “fiscal cliff.” With more than  $600 billion in tax increases and spending cuts  set to commence in January, officials in Washington must work vehemently to avoid the potential disaster that could cripple the U.S. economic recovery. Concerns remain that failure to reach bipartisan resolutions in our nation’s capital might prevent a solution from being reached in time.

Unlike the massive downturn in the stock market, the Gold price ended relatively flat today. Retention of the Obama administration has analysts predicting a continuance of current fiscal policy, which has included liberal government spending in an effort to stimulate the nation’s struggling economy. Investors awaiting an outcome of the election can now decide how to structure their portfolios. “It’s a rush to safe haven,” said  James Paulsen, the chief investment strategist at Minneapolis-based Wells Capital Management. During times of market uncertainty and dollar devaluation, the most sought-after safe haven investment has historically been Gold.

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

• Gold, $1,719.00, Up $2.50.
• Silver, $31.85, Down $0.23.