Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold rose again, closing 0.2% higher and adding another 0.2% in after-hours electronic trading, as traders prepare to go over the fiscal cliff. Senate Majority Leader Harry Reid declared today that budget negotiations are unlikely to resolve before deadline of January 1, when $600 billion in tax increases and spending cuts take effect. Investors scrambled for safe havens, driving both gold and the dollar higher, while U.S. equities fell. It was gold's fourth straight session of gains, marking its longest winning streak in nearly two months. Silver added 0.7% and palladium rose 2.3% while platinum slipped 0.2%.

At the Comex close: February gold rose $3 to $1,663.70; March silver added 20 cents, to $30.24; January platinum dropped $3.10 to $1,531.80; and March palladium rose $16.10 to $708.50 an ounce.

Treasury Secretary Timothy F. Geithner added pressure to the cliff debate yesterday by alerting Congress that the government will hit its statutory debt limit on Dec. 31. Unless an increase in the ceiling is built into the budget deal, Geithner said, he will have to take "extraordinary measures" to postpone a U.S. default, which would severely undermine credit ratings and harm the value of the dollar. It would also further boost safe-haven demand for gold. Bullion demand in India remains quite strong, according to Reuters, as jewelers restock from the festival season.