Gold drops amid hopes for US budget deal

Source: Dukascopy Bank SA
© Scanpix/Reuters
Precious metals were bearish on Tuesday as mounting hopes that the US lawmakers will manage to avert fiscal cliff spurred demand for riskier assets thus weighting on precious metals. At the same time, expected easing in Japan coupled with softer greenback were supportive for the commodity group.

Gold dropped as investors shunned safe-haven assets amid expectations that the US will avoid recession next year. However, weakness of the US Dollar as well as signs of strong physical demand from central banks limited losses of the yellow metal.

Silver moved in tandem with gold, sliding 2.02% ahead of key housing market data from the US due on Wednesday. At the same time, the grey metal drew some strength from a rally of the global equities and softer greenback.

Platinum and Palladium extended previous losses amid speculation that US officials are moving closer to budget agreement. However, a deficit on the physical market after strikes in South Africa and a decline in Russian exports continued to lend support for the metals.

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Wed, 19 Dec 2012 09:21:11 GMT

U.S. stocks rally on U.S. budget talks

Wall street edged higher on upbeat Tuesday as investors confidence on fiscal cliff agreement rose after U.S. lawmakers came closer to reaching a deal in order to avoid tax increasing and spending cuts. The S&P 500 recorded its first two-straight-day gain bigger than one percent since July, when it advanced 1.15% to 1,446.79, while the Nasdaq Composite went up 1.46%

Wed, 19 Dec 2012 09:02:20 GMT

Oil rises on U.S. budget optimism

Oil rose on Tuesday on confidence the U.S. will reach compromise on the country's budget, easing concerns of looming ‘fiscal cliff' in the world's largest crude consumer's economy. Light, sweet crude for January settlement was at 87.93 dollars a barrel, up 73 cents or 0.84%. Brent for February delivery was up 1.20 dollars or 1.11% at 108.84 dollars a barrel. 

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