Gold near four-month low
London, December 21, 2012
Gold slipped on Friday, holding near a four-month low hit in the previous session and on track for its steepest weekly drop since June, as the euro softened and US talks to avoid a fiscal crisis stalled again, turning away investors.
Gold initially rose before losing strength after House of Representatives Speaker John Boehner failed to unite his Republican lawmakers behind an effort designed to extract concessions from President Barack Obama in year-end "fiscal cliff" talks.
The latest development cast more uncertainty on the talks to avoid across-the-board tax hikes and spending cuts that could push the US economy into recession in 2013, which in theory could lift gold's safe-haven appeal.
"At the moment, the US budget talks are stalling. Many are unsure if they should enter the market. Perhaps when the US has more concrete news on the outcome, investors will be more comfortable taking positions again," said Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore.
"The market volume is thin amidst all these uncertainties, and the year is coming to an end. Many of the investors prefer to take profits and just leave the market."
Gold fell $1.38 an ounce to $1,645.76 by 0648 GMT, after hitting a low of $1,635.24 earlier, just shy of a four-month low of $1,635.09 touched in the previous session.
US gold for February added $1 an ounce to $1,646.90 after hitting a low around $1,636. - Reuters