Gold near four-month low, U.S. budget talks watched

SINGAPORE Fri Dec 21, 2012 7:28am IST

A couple looks into a shop window of a jeweller in the city centre of Frankfurt December 18, 2012. REUTERS/Lisi Niesner

A couple looks into a shop window of a jeweller in the city centre of Frankfurt December 18, 2012.

Credit: Reuters/Lisi Niesner

Related Topics

SINGAPORE (Reuters) - Gold regained some footing on Friday as the euro stayed near an eight-month high against the dollar and talks to avoid a fiscal crisis in the United States seemed to stall again, but the metal was still on track for its fourth weekly fall.

FUNDAMENTALS

* Gold was little changed at $1,647.06 an ounce by 0045 GMT after falling to its weakest level since August in the previous session on heavy liquidation by hedge funds and signs of an improving U.S. economy.

* U.S. gold for February rose $2.30 an ounce to $1,648.20.

* The U.S. House of Representatives abruptly recessed on Thursday amid uncertainty whether Republicans had the votes needed to pass a "fiscal cliff" tax plan offered by Speaker John Boehner.

* Iraq made its first major move in years to bolster its gold reserves in recent months, while Brazil increased its holdings of bullion by almost a third in November, data from the International Monetary Fund showed on Thursday.

MARKET NEWS

* Despite the euro zone's own debt problems, the euro was on track to end the year some 2 percent higher against the greenback. It was at $1.3251, near an eight-month high around $1.3309 set this week.

* Japan's Nikkei share average rose on Friday and may test a nine-month high after Wall Street stocks climbed on hopes for progress in U.S. fiscal talks, with exporters gaining on a weaker yen. .T

* U.S. crude stayed above $90 a barrel after five days of gains, though prices pulled back a touch on caution over U.S. budget talks as Republicans in the U.S. Congress pushed ahead with a plan that stands no chance of becoming law.

(Reporting by Lewa Pardomuan; Editing by Eric Meijer)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

GROUP OF 20

REUTERS SHOWCASE

Modi Speaks

Modi Speaks

PM Modi says al Qaeda will fail in India - CNN.  Full Article 

Alibaba Listing

Alibaba Listing

Alibaba surges on massive demand in trading debut  Full Article 

Importing Rice

Importing Rice

Top rice exporter India importing over 100,000 T on temporary supply squeeze.  Full Article 

GSK Fined

GSK Fined

China hands drugmaker GSK record $489 mln fine, sentences executives.  Full Article 

HMT in Demand

HMT in Demand

Fans rush to HMT as watchmaker marks time.  Full Article 

Apple Not Cool?

Apple Not Cool?

Some consumers say Apple is losing its "cool" factor  Full Article 

Asian Games 2014

Asian Games 2014

Full coverage of the 17th Asian Games as Incheon.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage