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.