Today investor concern turned in a different direction with the main focus being on global monetary policies.  Gold is on the rise in the aftermath of the U.S. presidential elections. Investors are aware and uneasy with the fiscal cliff approaching us within the next 54 days. “I think with the election behind us, traders and speculators are refocusing on monetary and fiscal policy, and they see these as being positive for Gold and that might be contributing to today's strength,” Jeffrey Nichols, senior economic advisor at Rosland Capital, said.

The devastation of Hurricane Sandy along with the upcoming fiscal cliff is expected to put a hold on the U.S. economy’s recovery. The events are set to possibly create at least two quarters of slow moving growth that could trigger a recession. David Rosenberg, economist and strategist at Gluskin Sheff in Toronto, said, “There's no question that if we get the fiscal cliff that we're going to get recession next year. The only question is how deep.” In order to correct the problem, it is likely politicians will have to come to an agreement on higher taxes and spending cuts, an agreement which proved to be a problem last year.

At 5 p.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,733.10, Up $17.60.
• Silver, $32.38, Up $0.67.

The number of people filing for unemployment benefits fell by 8,000 last week however, the effects of Hurricane Sandy are playing a big part in these numbers. One state claims that the loss of electricity because of the storm is suppressing filings. Others are claiming that workers who have lost jobs due to the storm are beginning to file.  The Labor Department spokesperson  admitted that it may take three to four weeks for the full impact of the storm to be realized in the jobless numbers. In an unexpected positive twist, the U.S. trade deficit shrank in September as exports rose. The gap fell to $41.5 billion. This is the smallest the deficit has been since December 2010.

Gold could see a longer term benefit  from the political uncertainty surrounding the fiscal cliff. With nearly $600 billion in spending cuts and tax increases set to kick in, Gold is seen as a safe haven investment.

In overnight trading, U.S. stock futures began the steady climb back after the worst day of the year.  Henrik Drusebjerg, senior strategist at Nordea Bank, said “The market will be very vulnerable to any political comment, whether it’s coming from Democrats or Republicans, and will look at any signs of negotiations being easier or tougher than expected.” His comments point to the impending fiscal cliff and the fact that investors are acutely aware of everything coming out of Washington.

At 9 a.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,715.70, Up $0.20.
• Silver, $31.84, Up $0.14.

The  Dow Jones Industrial Average fell more than 312 points  today, making it the largest single-day plunge of 2012. Now that the presidential election results are finalized, investors are shifting their focus towards the United States’ impending “fiscal cliff.” With more than  $600 billion in tax increases and spending cuts  set to commence in January, officials in Washington must work vehemently to avoid the potential disaster that could cripple the U.S. economic recovery. Concerns remain that failure to reach bipartisan resolutions in our nation’s capital might prevent a solution from being reached in time.

Unlike the massive downturn in the stock market, the Gold price ended relatively flat today. Retention of the Obama administration has analysts predicting a continuance of current fiscal policy, which has included liberal government spending in an effort to stimulate the nation’s struggling economy. Investors awaiting an outcome of the election can now decide how to structure their portfolios. “It’s a rush to safe haven,” said  James Paulsen, the chief investment strategist at Minneapolis-based Wells Capital Management. During times of market uncertainty and dollar devaluation, the most sought-after safe haven investment has historically been Gold.

At 5 p.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,719.00, Up $2.50.
• Silver, $31.85, Down $0.23.

The Gold price is  giving up some early gains  it enjoyed after President Barack Obama won a second term in the White House last night. Though the election is over, important issues are far from ending. Next up on the docket is the fiscal cliff at the end of the year. The President is now tasked with reaching a deal with a Republican-held House of Representatives, which is exactly the scenario that proved nearly impossible to solve over the past year or so. One analyst said, “I personally believe this will get sorted, but not after a lot of haggling and negotiating and this will create a lot of uncertainty and volatility in the markets.”

Early this morning,  Fitch Ratings said in a statement, “The economic policy challenge facing the President is to put in place a credible deficit-reduction plan necessary to underpin economic recovery and confidence in the full faith and credit of the U.S. Resolution of these fiscal policy choices would likely result in the U.S. retaining its AAA status from Fitch.” Last year, credit ratings agency Standard & Poor’s downgraded the U.S. from its AAA status, which carried the Gold price to a record high.

In Europe, Greek workers have begun a two day strike to protest further austerity measures being implemented via a parliamentary vote today. The five-year recession that has gutted the country is poised to continue if the measures are passed,  according to the opposition. Jean Claude Junker, chairman of the Eurogroup of eurozone finance ministers, believes otherwise. He said, “Our Greek friends have no options or choice. They have to do it. And my impression is that the reforms which are being undertaken in Greece are increasingly better understood by the Greek citizens.”

At 9 a.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,728.00, Up $11.50.
• Silver, $32.13, Up $0.06.