RTTN:Gold Ends Slightly Higher, Focus On Fiscal Cliff
Gold futures ended marginally higher Wednesday, on a slightly weak dollar as efforts at reviving talks to end the stalemate in U.S. budget negotiations continued to be in focus. President Barack Obama and lawmakers are expected to be back in Washington early Thursday and are expected to continue negotiations for a resolution to avoid the fiscal cliff looming ahead in January.
Earlier in the week, lawmakers indicated little hopes of any agreement to resolve the budget crisis with both sides refusing to budge from their stated stand. Any failure of a deal on the U.S. budget will automatically trigger some $600 billion in higher taxes and severe spending cuts beginning January next, which many economists fear would see the U.S. go into recession.
Gold for February delivery, the most actively traded contract, gained $1.20 or 0.07 percent to close at $1,660.70 an ounce Wednesday on the Comex division of the New York Mercantile Exchange.
Gold for February delivery scaled an intraday high of $1,668.70 and a low of $1,650.60 an ounce.
Gold prices ended marginally down Monday on uncertainty surrounding the U.S. budget talks to avert a fiscal cliff, with the House adjourning for Christmas.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.65 on Wednesday, down from 79.68 in North American trade late Monday. The dollar scaled a high of 79.77 intraday and a low of 79.42.
The euro traded higher against the dollar at $1.3218 on Wednesday, as compared to $1.3183 late Monday in North America. The euro scaled a high of $1.3253 intraday and a low of $1.3172.
In economic news, home prices in major U.S. metropolitan areas rose, with the S&P/Case-Shiller 20-City Composite Home Price Index increasing by a seasonally adjusted 0.7 percent in October following a 0.4 percent increase in September. Economists had expected prices to increase by 0.5 percent. Compared to the same month a year ago, the index was up by 4.3 percent versus economist estimates for a 4.1 percent increase.
The annual rate of growth in October reflected the biggest increase since May of 2010, when home prices were boosted by a homebuyer tax credit.
