Gold swung between gains and declines in New York amid concern U.S. lawmakers will fail to avert the so-called fiscal cliff of tax increases and spending cuts, Bloomberg reported.
It noted U.S. political leaders are debating how to avoid the fiscal cliff of more than US$600 billion in automatic tax increases and spending cuts that will take effect in January unless Congress acts. House Republican leaders canceled a vote on Speaker John Boehner's plan to allow higher tax rates for annual income above $1 million last week.
Gold for February delivery rose 0.1% to $1,661.60 an ounce by 7.51 a.m. on the Comex in New York. Prices gained and fell as much as 0.4% today and slid 2.2% last week, the biggest weekly loss since November. Gold for immediate delivery was up 0.2% at $1,660.97 in London.
Holdings in gold-backed exchange-traded products fell 1.6 metric tons from a record to 2,630.9 tons on Dec. 21, data compiled by Bloomberg show. Gold prices are set for a 12th consecutive annual gain as central banks from the U.S. to China pledge more steps to spur economic growth.
Bill Gross, who runs the world's biggest bond fund at Pacific Investment Management Co., said in a Twitter post yesterday that the fiscal cliff has more than a 50% probability.
Silver for March delivery lost 0.1% to $30.18 an ounce. Platinum for April delivery gained 0.4% to $1,546.60 an ounce. Palladium for March delivery rose 0.6% to $686.65 an ounce.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
