“Gold rose in New York, gaining with other commodities, on optimism U.S. lawmakers will reach agreement on the budget to avert automatic spending cuts.
President Barack Obama and House Speaker John Boehner are negotiating to avert the so-called fiscal cliff, more than $600 billion in tax increases and spending cuts set to start in January. Obama yesterday made a new offer that would raise taxes by $1.2 trillion and cut $1.22 trillion in spending, according to a person familiar with the talks. The U.S. Dollar Index, a gauge against six counterparts, held near a two-month low and crude rose for a third day.
“Gold broke back above the $1,700 level on optimism that a U.S. budget deal will be reached with a weaker dollar helping the move,” Cailey Barker, an analyst at Numis Securities Ltd. in London, said today by e-mail.
Gold for February delivery gained 0.1 percent to $1,699.40 an ounce by 6:55 a.m. on the Comex in New York after gaining as much as 0.4 percent. Spot gold was little-changed at $1,698.45 an ounce in London…”
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