Gold dips as U.S. hurries to resolve budget impasse

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Gold slipped for a fifth session out of seven on Wednesday as safe-haven bids slowed on hopes U.S. lawmakers would hash out a last-minute agreement to raise the debt ceiling before a Thursday deadline.
FUNDAMENTALS
Ø Spot gold had fallen 0.4 percent to $1,275.69 an ounce by 0022 GMT. It gained 0.6 percent on Tuesday as safe-haven buying emerged on fears the U.S. credit rating could be cut.
Ø Democratic and Republican leaders in the U.S. Senate could announce a deal late on Tuesday to extend the government’s borrowing authority until Feb. 7 and quickly re-open federal agencies that have been closed since Oct. 1, a Senate aide said.
Ø Fitch Ratings warned it could cut the sovereign credit rating of the United States from AAA, citing the political brinkmanship over raising the debt ceiling.
Ø “Reckless” U.S. fiscal policy will likely force the
Ø Federal Reserve to stand pat on monetary policy this month, said Dallas Fed president Richard Fisher.
Ø Gold premiums in India, the world’s biggest buyer of the precious metal, hit a record $100 an ounce, about 8 percent over London prices, on a shortage of supplies to meet festival demand, traders said on Tuesday.
Precious metals prices 0022 GMT

Metal

Last

Change

Pct chg

YTD pct chg

Volume

Spot Gold

1275.69

-4.5

-0.35

-23.82

Spot Silver

21.19

-0.06

-0.28

-30.02

Spot Platinum

1375.99

-1.01

-0.07

-10.36

Spot Palladium

703.5

-2

-0.28

1.66

COMEX GOLD DEC3

1275.7

2.5

0.2

-23.88

5182

COMEX SILVER DE C3

21.22

0.02

0.11

-30

929

Euro/Dollar

1.3519

Dollar/Yen

98.51

COMEX gold and silver contracts show the most active months
Source: Reuters
Source :Bullion Bulletin

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