Gold is on the move as investors flock back to the metal after last Friday’s selloff. “[For] a lot of commodity firms, their fiscal year ended in November, December starts another year, and these guys could have liquidated some [Gold positions] and they could be re-establishing right now,” Phil Streible, senior commodities broker at RJO Futures, said.  Another positive for Gold is that a bailout fund has been approved for Greece, as long as the country agrees to purchase its own debt. Today Greece announced they will buy back at least 10 billion euros of the outstanding balance.

The global economy is in its best shape in more than 18 months as China had higher than expected production data for November. Also,  China's economy has received a boost as optimism grows for new leadership headed by Xi Jinping, who is expected to increase the financial condition. “The global economy continues to expand next year,” said Peter Sorrentino, who helps manage about $14.6 billion of assets at Huntington Asset Advisors in Cincinnati. “Commodities will not have a ‘shoot the lights out’ year but it should be a profitable year for commodities.”

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

• Gold, $1,717.70, Up $5.00.
• Silver, $33.71, Up $0.46.

The Gold price started December strong on  positive manufacturing news from China, regaining some of the footing lost in November. The data from a private manufacturing purchasing-managers index came in slightly stronger than anticipated. In addition, the Gold price could stabilize after last week’s sell off. A strategist at Credit Suisse wrote in a research note that the sell off “appears absorbed and we think prices should now stabilize before a modest recovery could take place towards the end of the year. The seasonal weakness of the U.S. dollar in December should also help.”

Closer to home, the fiscal cliff is being set up as a holiday showdown between the two government powers. Last week saw both the president and the Republican leadership sparring with words over the spending cuts and tax increases due to be implemented early in 2013.  The past three Christmas seasons showed us similar eleventh-hour developments  that ended up being resolved: 2009 health care, 2010 tax cut, and 2011 payroll tax holiday. Maybe we are getting used to this type of last minute resolution.

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

• Gold, $1,718.10, Up $5.40.
• Silver, $33.68, Up $0.42.

Home prices rose in September, sending a signal that the housing market is showing signs of a recovery.The S& P/Case-Shiller home-price index was released this week, showing that “prices gained 3 percent over the past 12 months.”

The Gold price has held mostly steady Friday with a recent dip as U.S. trading began. The Gold price is set to gain overall for the month of November. Trading has been volatile as the asset seems to be tied to the fate of the fiscal cliff. Right now, Gold is trending with equities.  Simon Weeks, head of Precious Metals at Scotia Mocatta, said that if a breakthrough in the fiscal cliff talks came, the trend would likely continue and the Gold price would likely follow any bounce in those assets. “The knee jerk reaction will be for Gold to follow other markets up or down, and after its initial reaction, it will tend to decouple,” he said.

At 2:30 p.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,712.80, Down $16.70.
• Silver, $33.34, Down $1.08.

Gold is looking to end the month of November on the positive side today. Analysts at Commerzbank said that  one bullish sign for Gold’s price  is the number of investors interested in not only physical metals, but exchange-traded funds (ETF) as well.  “ETF investors … are proof that Gold remains in high demand as a store of value and a safe haven despite all the price fluctuations.  We are confident that the Gold price will continue to climb in 2013,” analysts said in a note.

The European Central Bank (ECB) and the International Monetary Fund (IMF)  continue to push for reform in the eurozone.  ECB chief Mario Draghi said, “We have not yet emerged from the crisis.  The recovery for most of the eurozone will certainly begin in the second half of 2013.”  The comments from Draghi come after 173,000 people joined the already-large number of unemployed workers in the region.  Spain, the eurozone’s third-largest economy, continues to be one area of concern, but until the country formally requests aid, the ECB is not allowed to intervene.

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

• Gold, $1,725.00, Down $4.50.
• Silver, $34.14, Down $0.28.

Gold is slowly recovering today after yesterday's profit taking  took the metal’s price down. The price of Gold has increased more than 10 percent for the year so far as investors have flocked to the yellow metal as a safe haven. Jeff Kilburg, CEO of Killir Kapital Management believes the Federal Reserve is adding value to Gold as they continue to print money. Kilburg said, “The theoretical value of Gold when you see that the monetary base grow by another 18.4 percent, $735 billion, it puts Gold at $2,000.”

The Bank of England announced today that British banks may not have sufficient funds to protect themselves against financial market mishaps. Next year the BoE’s Financial Policy Committee will have power over British bank regulation and have already encouraged the present regulator to re-evaluate the banks’ capital to accurately represent the risk of bad loans and examine fines for misconduct. “Progress by banks in raising capital has slowed and investor confidence remains low. … The Financial Services Authority should ensure that firms either raise capital or take steps to restructure their business and balance sheets in ways that do not hinder lending to the real economy,” the BoE said in its half-yearly Financial Stability Report.

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

• Gold, $1,727.70, Up $8.90.
• Silver, $34.31, Up $0.56.

Optimism from yesterday is pointing to a positive start to the markets today.  The Dow reversed a greater than 100 point opening deficit yesterday  after comments from both political parties alluded to a resolution of the budget crisis by Christmas. According to the most  recent Bloomberg Global Poll of Investors, there is sentiment that the U.S. will in fact avoid a head long dive off the fiscal cliff. When investors were asked which markets had the best opportunities for 2013, the U.S. was picked at the top, which has happened for eight straight quarters of this poll.

The Gold price also saw a sharp correction yesterday as it rode the rollercoaster ride of the fiscal cliff talks.  Ross Norman, CEO of Sharps Pixley, said,  “Gold is being pulled higher on this prevailing optimism over the fiscal cliff.” He goes on to say, “One would expect good news on the fiscal cliff to be Gold-negative, but now Gold is acting as a risk asset like shares.”

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

• Gold, $1,725.40, Up $6.70.
• Silver, $33.91, Up own $0.15.

The Gold price fell today in sharp contrast to the Dow Jones Industrial Average and S& P 500. After reassuring comments today on the part of President Obama and Speaker of the House John Boehner, the  stock market spiked more than 100 points. A hard line approach appears to be under way in Washington as President Obama indicated he would like  a solution to the fiscal cliff sooner than later. “The president set a timetable, that he'd like to get this done by Christmas, as opposed to drawing it out to Dec. 31, and I do think the markets are encouraged that there is an aggressive, let's get it done, attitude,” said Jim Russell, chief equity strategist and regional investment director, wealth management, at U.S. Bank.

As stocks rallied, Gold suffered its largest single day plunge in almost a month. Fiscal cliff concerns and ongoing worry over Greek debt initiated a hefty round of stop-loss orders at today’s open in which  2 million ounces of Gold futures exchanged hands in less than five minutes. Experts still assert that Gold still promises upward movement as a long term investment. According to Richard Hastings, macro strategist at Global Hunter Securities, “[G]old will come right back after other assets take a beating.” The fiscal cliff countdown continues with 33 days left on the clock to see if politicians can find a strategy to sidestep the $600 billion in tax hikes and spending cuts set to take place at the end of the year.

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

• Gold, $1721.30, Down $23.00.
• Silver, $33.82, Down $0.24.