Both precious metals finished the week slightly lower, but still performed better than the overall equity market. All three major U.S. stock indices have been unable to find support as investors shift their focus to the looming fiscal cliff, which includes a combination of spending cuts and tax hikes.
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President Obama sat down with congressional leaders on Friday to discuss the fiscal cliff. A press conference following the meeting provided optimism, but the details are still missing in action. “I believe we can do this and avert the fiscal cliff,” Republican House Speaker John Boehner explained to reporters. Democratic Senate Majority Leader Harry Reid said, “We feel we understand what the problem is, and I feel very good about what we were able to talk about in there.”
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) traded flat, while the iShares Silver Trust (NYSEARCA:SLV) dropped nearly 1 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) both jumped more than 1 percent. Meanwhile, Silver Wheaton (NYSE:SLW) and Endeavour Silver (NYSE:EXK) gained 1.5 percent and 3.90 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS