Further signs of recovery in the US may support cyclical precious metals
The US economy added 146k jobs in November, beating expectations that were tempered by Superstorm Sandy that hit the east coast last month. More jobs were added in November than October (although the October figure saw a large downward revision).
If the US can avoid a worst-case fiscal-cliff induced recession next year, white precious metals silver, platinum and palladium may outperform, given their gearing into the global industrial cycle.
Key events to watch this week: FOMC meeting and US fiscal negotiations
Given the lack of progress in US budgetary discussions, the Fed is likely to continue to support loose monetary conditions to counter weak business investment.
Announcements of new bond purchases to replace “Operation Twist” flows will likely be taken positively by gold investors.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
