We have updated our privacy policy and terms & conditions. Find out more here.

Gold falls on U.S. fiscal uncertainty as investors flock to dollar

CommoditiesDec 28, 2012 06:42PM GMT Add a Comment
Share with a Friend
Thanks for sharing
Emails have been sent to:
To send more emails click here
Investing.com - Gold prices softened in U.S. trading Friday as investors avoided the precious metal and opted to ride out U.S. fiscal uncertainties parked in the U.S. dollar.

Gold and the dollar trade inversely from one another.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were down 0.48% at USD1,655.75 a troy ounce in U.S. trading, up from a session low of USD1,654.55 and down from a high of USD1,666.95 a troy ounce.

Gold futures were likely to test support USD1,636.45 a troy ounce, the low from Dec. 21, and resistance at USD1,668.45, Wednesday's high.

In the U.S., President Barack Obama was to meet congressional leaders later Friday at the White House to discuss ways to avoid the fiscal cliff, a combination of tax hikes and spending cuts taking effect in unison at the end of this year.

The nonpartisan Congressional Budget Office has warned that failure to address the fiscal cliff could tip the U.S. economy into a recession next year.

Sticking points between the White House and congressional Republicans include tax rates on top U.S. earners and the scope of public spending cuts.

While policymakers can still negotiate fiscal reforms in the coming days or even in early 2013, investors opted for the safe and liquid greenback to ride out uncertainty.

Investors largely ignored solid U.S. economic indicators.

In the U.S. earlier, the National Association of Realtors revealed that pending home sales beat expectations in November, rising by 1.7% after a 5% increase the previous month.

Analysts were expecting pending home sales to rise by 1.0% in November.

Elsewhere in the U.S., the Chicago's purchasing managers' index rose to 51.6 in December, up from 50.4 in November and beating expectations for a rise to 51.0.

Meanwhile on the Comex, silver for March delivery was down 0.61% and trading at USD30.055 a troy ounce, while copper for March delivery was down 0.26% and trading at USD3.591 a pound.

Gold falls on U.S. fiscal uncertainty as investors flock to dollar

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?

Successfully Reported

Thank you. This comment has been flagged for a moderator.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.