The Gold price is  giving up some early gains  it enjoyed after President Barack Obama won a second term in the White House last night. Though the election is over, important issues are far from ending. Next up on the docket is the fiscal cliff at the end of the year. The President is now tasked with reaching a deal with a Republican-held House of Representatives, which is exactly the scenario that proved nearly impossible to solve over the past year or so. One analyst said, “I personally believe this will get sorted, but not after a lot of haggling and negotiating and this will create a lot of uncertainty and volatility in the markets.”

Early this morning,  Fitch Ratings said in a statement, “The economic policy challenge facing the President is to put in place a credible deficit-reduction plan necessary to underpin economic recovery and confidence in the full faith and credit of the U.S. Resolution of these fiscal policy choices would likely result in the U.S. retaining its AAA status from Fitch.” Last year, credit ratings agency Standard & Poor’s downgraded the U.S. from its AAA status, which carried the Gold price to a record high.

In Europe, Greek workers have begun a two day strike to protest further austerity measures being implemented via a parliamentary vote today. The five-year recession that has gutted the country is poised to continue if the measures are passed,  according to the opposition. Jean Claude Junker, chairman of the Eurogroup of eurozone finance ministers, believes otherwise. He said, “Our Greek friends have no options or choice. They have to do it. And my impression is that the reforms which are being undertaken in Greece are increasingly better understood by the Greek citizens.”

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

• Gold, $1,728.00, Up $11.50.
• Silver, $32.13, Up $0.06.

The Precious Metals market has shown positive gains today for a couple of reasons. The big reason is the presidential election in the United States.  Many experts believe President Obama will win a second term in office, and that has given the markets a boost. “The prime driver for Gold and Silver has been the prospect for monetary inflation and quantitative easing. So an Obama victory would support [the view] that these policies would continue unabated,” says Brien Lundin, editor of Gold Newsletter. The second factor in today’s rising prices comes from Europe.  The recovery efforts in the region have almost come to a standstill, and patience is wearing thin. “We are seeing investors getting disillusioned about the eurozone, the positive factor from the ECB's plan to buy bonds is fading and that is fundamentally weighing on the euro," said Neil Mellor, currency strategist at Bank of New York Mellon in London.

In Greece, the parliament is set to vote on budget cuts to help secure loans from lenders. However, the people of Greece are far from pleased with these proposed cuts.  Today started a massive walk-out by two of the largest labor unions in the country. The estimated number of protesters was about 16,000, but could grow. The Greek people are not at a loss for words regarding the situation. " The measures are wrong, the politicians and the rich aren't paying their taxes and the only ones paying are those on 300 and 500 euros a month," said Dimitris Karavelas 42, who has been forced to shut down his small construction company.

At 5 pm (EST), the APMEX Precious Metals spot prices were:

• Gold, $1717.50, Up $32.80.
• Silver, $32.03, Up $0.86.

U.S. stock futures and Precious Metals are  up across the board this morning, as Americans are slated to elect the next U.S. President. The fact that both stocks and Metals are gaining seems to be foreshadowing the close race which is expected throughout the day and night, with recent reports saying that an Obama win would be bullish for Gold, while a Romney win would be bullish for stocks. Analysts from Danske Research said in a note to investors, “The biggest concern in the financial market is that the Congress will not be able to agree on softening the impact from the fiscal cliff facing the U.S. next year.”

The managing director of Egan-Jones, a sovereign debt ratings firm, said that  even if Congress is able to reach a deal on the fiscal cliff, downgrades to the country’s credit rating are still likely  to happen. Sean Egan said, “The key measure on sovereign credit quality is debt-to-GDP, in the case of the U.S., it’s risen rather dramatically, from four years ago at 75 percent debt-to-GDP, to currently over 104 percent… Regardless of who’s elected, either one is going to have to deal with a rather high deficit.” Standard & Poor’s, another credit-ratings agency, downgraded the U.S. rating in 2011, which ignited a record run for the price of Gold.

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

• Gold, $1,692.90, Up $8.20.
• Silver, $31.37, Up $0.20.

Gold prices are gaining today as the U.S. Presidential election approaches, which has been the focal point for 2012 in the investment market. The speculation on which candidate will be elected and what they will bring to the table has been strong today as many have shared their outlook for what it could mean for Gold. Phil Streible, senior commodities broker at RJO Futures offered his comments. To the possibility of President Obama being re-elected, he said we would continue to see, " fiscal irresponsibility, (Federal Reserve Chairman) Ben Bernanke going all the way through [his term], quantitative easing full throttle, weaker dollar.” Streible then speculated on a Mitt Romney victory, saying, " You get Romney and he's planning on shrinking the government, cutting spending, becoming more fiscally responsible ... so you're probably going to see a stronger dollar, weaker metal on him.”

A private sector report shows that U.S. consumer confidence rose for the month of October asAmericans are beginning to feel more optimistic about the economy. The report reflected a reading of 72.2 for October, an substantial increase from the reported 68.4 in September, and the highest level since February 2008. The labor and housing market are both more upbeat than previously recorded as consumer certainty is improving with the holidays approaching soon. It is expected that new home construction will create growth this year, which would be the first time since 2005.   

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

• Gold, $1,686.90, Up $10.20.
• Silver, $31.21, Up $0.32.

The two largest economies in the world, the U.S. and China, both had investors sitting on the sidelines this weekend. The U.S. presidential vote is tomorrow, while on Thursday, China’s ruling Communist Party starts its 18th National Congress. At this congress it will see a new generation of leaders that will hold power for the next 10 years. Investors are showing caution while strategists are saying it may not be time to be overly reserved   some risk, including equities, should be resumed.

Pre-election sentiment is that an  Obama win will be good for Treasuries and a Romney win will be good for equities. After the election all eyes will turn to the fiscal cliff and how the government will deal with the looming spending cuts and rising taxes.

Gold rose slightly after strong jobs data forced Gold to a two month low on Friday. A strong U.S. dollar is keeping the Precious Metal from rebounding too high. The dollar rose to nearly a two month high against a basket of currencies as investors sought safe haven before the U.S. presidential election tomorrow.

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

• Gold, $1,682.90, Up $6.70.
• Silver, $31.06, Up $0.16.