Gold Prices Settle Higher; Silver Prices also Gain
Gold prices settled higher on the final day of 2012, posting its 12th straight annual gain. Silver prices also edged higher on Monday.
Gold gained amid optimism that lawmakers will reach a deficit reduction deal before the midnight deadline and avert the fiscal cliff. Hopes of a fiscal cliff deal were raised after President Obama said an agreement to prevent middle class tax hike was in sight, however, more work needed to be done before the midnight deadline to avert the fiscal cliff.
Gold also benefited from strong economic data out of China. A survey of private factory managers showed that manufacturing activity in China hit its fastest pace in December since May 2011.
Spot gold rose around 1.20% to $1,676 an ounce on Monday. Gold futures for delivery in February on the Comex division of the New York Mercantile Exchange settled $19.90 higher at $1,675.80 an ounce.
Silver prices also gained on Monday, with spot silver climbing 1.3% to above $30 an ounce.
In late trading on Monday, the iShares Silver Trust (ETF) (NYSE: SLV) was up 1.24% to $29.45, the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 2.40% to $44.36, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) was down 2.64% to $49.71.
Platinum and palladium also edged higher on Monday. At last check, spot platinum was up 1% to near $1,536 an ounce, while spot palladium was up almost 1% to above $700 an ounce.