Gold Unchanged as Investors Consider Stimulus, Budget Concerns

Gold was steady in New York as investors weighed additional U.S. stimulus and mounting concerns that lawmakers haven’t moved closer to resolving the country’s budget impasse.

Prices dropped for the third-straight week even after the Federal Reserve said Dec. 12 it will start buying $45 billion a month of Treasuries, adding to $40 billion a month of existing mortgage-debt purchases. U.S. President Barack Obama and House Speaker John Boehner met yesterday to discuss averting more than $600 billion of spending cuts and tax increases before a year- end deadline, with no public announcement of progress.

Gold futures for February delivery rose 20 cents to settle at $1,697 an ounce at 1:41 p.m. on the Comex in New York. The metal was down 0.5 percent this week.

Prices are heading for a 12th consecutive annual gain as central banks from the U.S. to China pledge more steps to spur economic growth. Holdings in gold-backed exchange-traded products rose 3.9 metric tons to a record 2,630 tons yesterday, data compiled by Bloomberg show.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell