Investing.com - Gold prices rose in Asian trading on Thursday after U.S. President Barack Obama assured the world his administration and Congress will take steps to steer the country away from a fiscal cliff, which sparked demand for risk.
The fiscal cliff, a combination of rising taxes and cuts to government spending converging at the close of this year, could tip the U.S. into a recession next year if Congress fails to address it.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.31% at USD1,724.15 a troy ounce, up from a session low of USD1,720.95 and down from a high of USD1,725.95 a troy ounce.
Gold futures were likely to test support at USD1,708.35 a troy ounce, Wednesday's low, and resistance at USD1,754.65, Monday's high.
Fears U.S. lawmakers are running out of time to steer the country away from the fiscal cliff have suppressed appetite for risk and sent investors chasing the dollar, which normally trades inversely from gold.
The nonpartisan Congressional Budget Office has said failure to deal with the fiscal cliff could send the economy contracting by 0.5% in 2013.
In the U.S. earlier, President Obama assured the world that “something will be done” to steer the country away from the fiscal cliff, which stoked bullish spirits in the market.
Gold was trading down earlier on soft U.S. data, which sent investors chasing safe-haven dollar positions.
The Commerce Department reported earlier that new home sales fell by 0.3% to a seasonally adjusted 368,000 units in October, confounding expectations for an increase to 390,000.
New home sales for September were revised down to 369,000 units from a previously reported 389,000.
Elsewhere, market talk grew that a large U.S. financial institution was planning to roll over December contracts, which expired in recent trading, but instead outright sold them when floor trading opened and sent prices dropping prior to Obama's bullish comments.
Elsewhere on the Comex, silver for March delivery was up 0.07% and trading at USD33.793 a troy ounce, while copper for March delivery was up 0.10% and trading at USD3.543 a pound.
The fiscal cliff, a combination of rising taxes and cuts to government spending converging at the close of this year, could tip the U.S. into a recession next year if Congress fails to address it.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.31% at USD1,724.15 a troy ounce, up from a session low of USD1,720.95 and down from a high of USD1,725.95 a troy ounce.
Gold futures were likely to test support at USD1,708.35 a troy ounce, Wednesday's low, and resistance at USD1,754.65, Monday's high.
Fears U.S. lawmakers are running out of time to steer the country away from the fiscal cliff have suppressed appetite for risk and sent investors chasing the dollar, which normally trades inversely from gold.
The nonpartisan Congressional Budget Office has said failure to deal with the fiscal cliff could send the economy contracting by 0.5% in 2013.
In the U.S. earlier, President Obama assured the world that “something will be done” to steer the country away from the fiscal cliff, which stoked bullish spirits in the market.
Gold was trading down earlier on soft U.S. data, which sent investors chasing safe-haven dollar positions.
The Commerce Department reported earlier that new home sales fell by 0.3% to a seasonally adjusted 368,000 units in October, confounding expectations for an increase to 390,000.
New home sales for September were revised down to 369,000 units from a previously reported 389,000.
Elsewhere, market talk grew that a large U.S. financial institution was planning to roll over December contracts, which expired in recent trading, but instead outright sold them when floor trading opened and sent prices dropping prior to Obama's bullish comments.
Elsewhere on the Comex, silver for March delivery was up 0.07% and trading at USD33.793 a troy ounce, while copper for March delivery was up 0.10% and trading at USD3.543 a pound.