Economic uncertainty chips away at gold prices

AP News
Posted: Dec 04, 2012 3:27 PM

Uncertainty about U.S. budget talks is chipping away at gold prices.

Gold fell 1.5 percent to finish Tuesday at $1,695.80 an ounce. That's the lowest in a month.

Republicans and Democrats remain at odds over the budget. Automatic tax increases and government spending cuts take effect Jan. 1 unless they reach an agreement. Economists believe those measures could send the U.S. back into a recession.

Investors are unsure about putting money into commodities. If the U.S. economy slows, it could cut demand for industrial metals, oil and other raw materials. Some are selling contracts for a profit while others are just staying out of the market.

Hold The Damn Vote Already
Derek Hunter

In other trading, prices are lower for industrial metals, oil, wheat and corn. Soybeans are higher.