* “Fiscal cliff” plan headed for crucial vote
* Spot gold signals mixed – technicals
* Coming Up: U.S. ICSC chain stores yy weekly; 1245 GMT
(Updates prices, adds details)
By Lewa Pardomuan
SINGAPORE, Jan 2 (Reuters) – Gold rebounded from intraday
lows on Wednesday after last-minute talks to end the U.S.
“fiscal cliff” crisis showed signs of progress.
A weaker U.S. dollar also lifted gold, which was likely to
rise further as equities firmed on hopes the House of
Representatives would vote to avert tax rises and spending cuts
that are technically already in force, and prevent the country
from plunging into recession.
Gold was steady at $1,675.50 an ounce by 0232 GMT
after hitting a low around $1,670. Gold ended up around 7
percent in 2012 – the 12th straight year of gains for the
precious metal, which makes it one of the longest bull runs ever
for a commodity
“I still believe at the end of the day the talks on the
fiscal cliff should go through but of course not without some
twists and turns,” said Brian Lan, managing director of
GoldSilver Central Pte Ltd in Singapore.
U.S. gold for February was steady at $1,676.50 an
ounce.
After a day of deliberation, there appeared to be enough
Republicans in the House ready to back a Senate bill that would
raise taxes on the wealthiest Americans and close a crucial
chapter of the budget dispute that has consumed Washington for
months.
Strictly speaking, the United States went over the cliff in
the first minutes of the New Year because Congress failed to
produce legislation to halt $600 billion of tax hikes and
spending cuts scheduled for this year that started kicking in on
Jan. 1.
A failure to clinch a deal may spur safe-haven buying of
gold, but since many investors have both equities and gold in
their portfolios, the metal may also track stock markets higher
if an agreement is reached.
“Whatever happens in Washington, we suspect gold will likely
do better over the next few weeks as the colossal failure of
political will to get America’s fiscal house in order should
provide fodder for the gold bugs to bid prices higher,” Edward
Meir, metals analyst at brokerage INTL FCStone, said in a note.
Asian stocks started new year trading with tentative gains,
while the dollar fell on Wednesday.
Precious metals prices 0232 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1675.50 0.96 +0.06 0.06
Spot Silver 30.32 0.04 +0.13 0.13
Spot Platinum 1546.25 11.25 +0.73 0.73
Spot Palladium 702.22 10.22 +1.48 1.48
COMEX GOLD FEB3 1676.50 0.70 +0.04 0.04 4279
COMEX SILVER MAR3 30.38 0.15 +0.51 0.50 1001
Euro/Dollar 1.3280
Dollar/Yen 86.94
(Editing by Michael Urquhart)
