“Gold dropped for a third day to trade near a one-month low as a stronger dollar damped demand for commodities, overshadowing the highest-ever holdings in exchange-traded products backed by bullion.
A few dozen Republicans joined a bipartisan call to break an impasse between PresidentBarack Obama and House Speaker John Boehner to avoid spending cuts and tax increases in January, known as the fiscal cliff. The U.S. Dollar Index, which tracks the greenback against six major partners, gained as much as 0.2 percent today. European Central Bank policy makers today refrained from cutting interest rates further.
“A stronger dollar added some pressure to the precious complex,” said Andrey Kryuchenkov, an analyst at VTB Capital in London.
Gold for February delivery declined 0.2 percent to $1,691 an ounce by 7:48 a.m. on the Comex in New York. The metal dropped to $1,686 yesterday, the least expensive since Nov. 6. Spot gold slid 0.2 percent to $1,690.39 an ounce in London.
ECB policy makers meeting in Frankfurt held the benchmark rate at a record low of 0.75 percent, as forecast by 56 of 61 economists in a Bloomberg News survey. ECB President Mario Draghi will unveil the latest economic forecasts, including a first projection for 2014, later today.”
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