Daily Market Report 11/9/12

GOLD

On Tuesday (Election Day) the Gold price was trading at $1,687, when information was released that the amount of Democratic early election ballots were much higher than expected, an excellent indicator that President Obama could be re-elected. The Gold market started to move higher, what I would call the Obama Rally, and closed that day at $1,714 per ounce. Since Tuesday, the Obama Rally has continued, and today at 11am PDT Gold is now trading at $1,733.60 per ounce, up $4 per ounce on the day and up $46.60 since the Obama Rally started on Tuesday.

SILVER

Silver is moving up on the optimism of President Obama and the Republicans reaching a deal to avoid the Fiscal Cliff. If we go over the Fiscal Cliff, the price of Silver will drop dramatically. At 11am PDT today, Silver is up $0.36, trading at $32.59 per ounce on excellent volume for a Friday.  

WHAT IS THE FISCAL CLIFF EVERYONE IS TALKING ABOUT

The Fiscal Cliff - the point at which a series of tax increases and government spending cuts are set to come into force automatically next year - is the first major obstacle for Obama’s government to negotiate. The risk is that these changes will strip $607 billion from US GDP, potentially sending its economy into recession.