Gold futures finished higher Wednesday reclaiming 1,730 oz level, as disappointing US economic data fueled the precious Yellow metal’s safe-haven appeal, and as concerns about the Fiscal Cliff continue.

Comex Gold for Dec delivery rose 5.30, or 0.3%, to settle at 1,730.10 oz. Gold traded between 1,720.50 and 1,734.

Also in play for Gold, 2 days ahead of his 1st formal post-election meeting with congressional Republicans, President Obama held a news conference Wednesday that began shortly before Comex Pit trading for Gold ended.

Traders are looking for signs of the White House’s strategy for the Fiscal Cliff, the billions in automatic tax hikes and spending cuts that will take effect unless the Obama and Congress take action. No strategy was apparent in the news conference as of the close of trading.

Positive comments about the Fiscal Cliff may lead to downward pressure on Gold bullion. The scale of the fiscal challenges facing President Obama and Congress mean that any weakness will likely be short-term.

Retail sales dropped a seasonally adjusted 0.3% last month, the Commerce Department said Wednesday. Economists surveyed expected a 0.1% decline.

The producer price index fell a seasonally adjusted 0.2% in October, the Labor Department said Wednesday. Economists surveyed predicted a 0.2% increase.

In the currencies market, the ICE dollar index DXY -0.08% , which measures the Greenback against a basket of 6 rival currencies, was lower at 80.954 from 81.097 late Tuesday. That helped Gold move higher because a weaker USD makes the metal cheaper for holders of other currencies to buy.

The fall in the US equities market also fueled interest in Gold.

Other metals finished mostly higher.

Dec Silver added 0.39, or 1.2%, to settle at 32.88 oz.

Dec Palladium closed + 4.95, or 0.8%, at 641.55 oz.

And Platinum for Jan rose 5.20, or 0.3%, to 1.591.60 oz.

Johnson Matthey’s Platinum 2012 Interim Review said on Tuesday the platinum market likely will see a deficit of 400,000 oz due partly to a recent string of labor strikes that disrupted mining activities in South Africa.

Copper was the outlier among metals. Copper for Dec delivery -0.46% finished down nearly 2 cents, or 0.5%, at 3.45 lb.
Crude Oil (WTI) 86.34 +0.96 (+1.12%).

 

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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