Gold ended the year on an up note, rising in spite of strong news coming out of Washington, D.C., about the potential for a deal on the looming financial cliff.
Bloomberg reports that gold prices rose an impressive 7 percent on the year, despite failing to near the record price set in September 2011 and suffering the largest quarterly drop in eight years.
The gain marks the 12th straight year of annual gains for the precious metal, the longest run in more than 90 years.
Much of the support for gold has come from the ongoing promise of quantitative easing from both the U.S. and several other important currencies around the world, including the euro and the Japanese yen.
"All that money printing across the globe put a bid under gold," Matt Zeman, a strategist at Kingsview Financial in Chicago, told the news source. "There is overall optimism about the fiscal deal so we are seeing buying across the counter."
In addition, MarketWatch reports that the proposed deal to resolve the fiscal cliff actually proved supportive of gold, as investors seemed to believe that the final agreement would likely still lead to significant debt and thus a weakening dollar.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.