Gold dipped down Monday as continued concerns over an anemic global economy worsened prior to the arrival of Hurricane Sandy.
Driven by strident warnings issued by weather services across the East Coast of the U.S., New York shut down its COMEX/NYMEX trading floor, though electronic trading continued via the Globex platform.
Based in large part on lack of certainty regarding the stimulus action from the Federal Reserve, as well as generally poor domestic economic data, gold kept up a third straight week of decline through the week past. It also marked gold’s first such performance in more than a year, as Reuters reports.
And Hurricane Sandy, of course, added to the woes by causing the first weather-related closure of the domestic stock markets in nearly three decades. Wall St. stayed closed through Tuesday while damages are assessed and widespread power outages are dealt with.
Moreover, the looming presidential elections could cause gold to hover in its present range with no great swings either way.
Spot gold dipped 0.2 percent to hit $1,708.06 per ounce by 1:49pm Eastern Time on Monday, while December futures shed $3.20 to reach $1,708.70. Trading volumes were a mere third of the 30-day average.
Despite the hurricane, gold was not majorly affected, and most of the uncertainty remains focused on the economy—especially Friday’s upcoming U.S. non-farm payroll data.
However, with most of the East Coast reeling from the storm, and Sandy continuing to make its way westward over the country, the jobs data release may well be delayed.
Capping all of this off is the so-called ‘fiscal cliff’,’ a series of automatic tax increases and spending reductions that are set to activate in the event that Congress does not reach a deficit-cutting deal before 2013.