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Gold & Silver Rebound on Safety Demand

December 22, 2012 at 0:29 by Vladimir Vyun

Gold and silver rallied today as there were no signs that US politicians are able to resolve their disagreements. Without some form of a consensus, the US economy will face the fiscal cliff and potentially even a recession. It looks like the safety role returned to precious metals (at least for now) as they profited from the resulting risk aversion.

Gold also advanced as Brazil’s stockpiles of the metal have double since August after the country increased its reserves for the third month. Central banks are diversifying their holdings and that add to investment demand for gold. Analysts expect this trend to carry on to the next year, supporting prices for the metal.

Spot gold price advanced $9.30 (0.56 percent) to close at $1,657.22 per troy ounce today. Spot silver price went up $0.05 (0.17 percent) to $30.01 per ounce.

If you have any questions and comments on the commodities today, use the form below to reply.

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