Gold & Silver Daily Market Recap: December 17th, 2012

Spot gold remains below $1700 despite weaker than expected manufacturing data.

It would appear hurricane Sandy is still having an effect on U.S data as The Empire State Manufacturing Index came in at its lowest level since September. General business conditions were negative in December with new orders falling by 3.7 points.

Asian markets have seen some good buying as Japanese elections were favorable for metals.  The election victory of Japan's main conservative party means that the hawkish former Prime Minister Shinzo Abe will get a second chance to lead the nation. We could see some sort of stimulus coming out of Japan in the next few weeks. This should give metals a jump start.

This will be a short work week so we could see some book squaring Wednesday as traders look to the Christmas break.  The U.S fiscal cliff remains in the short sight of traders as it would appear gold will remain in a holding pattern until both sides can come up with a workable solution. Traders will remain focused on the so-called fiscal-cliff talks in Washington as Congressional leaders and the White House have been struggling to come up with a deal to avert automatic U.S. tax increases and spending cuts that could spur the U.S economy back into a recession.

Spot silver has seen better days, then dual role metal has traded to $32.09 and held; for now. Look for good buying at $31.50 level should the metal break lower. Just like gold, the metal has been well supported on dip buying.

 December 17th Closing Prices