Investing.com - Gold prices rose on safe-haven demand early Monday as investors stocked up to see if the U.S. can avoid a one-two punch of tax hikes and spending cuts set to strike the economy at the same time next year
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.14% at USD1,733.35 a troy ounce, up from a session low of USD1,732.55 and down from a high of USD1,735.95 a troy ounce.
Gold futures were likely to test support at USD1,727.05 a troy ounce, Friday's low, and resistance at USD1,738.75, Friday's high.
At the end of this year, the Bush-era tax cuts and other tax benefits expire at the same time pre-programmed cuts to government spending are scheduled to take effect, a combination known as a fiscal cliff that could send the country into recession if left unaddressed by Congress.
Failure to address the cliff could spell disaster for U.S. markets, which sparked safe-haven demand for gold considering the economy is set to careen over the fiscal cliff in less than two months.
Lawmakers have said they will avert disaster, but uncertainty alone has many investors on edge in that even if policymakers do steer the country away from the cliff, business owners still don't know what a compromise will mean for their taxes next year.
Gold also continued to see support stemming from President Barack Obama's reelection.
During the presidential campaign, President Obama's Republican challenger Mitt Romney said he opposed the Federal Reserve's loose policies, including quantitative easing, under which the Fed buys bonds held by banks, pumping the economy full of liquidity to depress borrowing costs to spur recovery, which weakens the dollar as a side effect.
Fed Chairman Ben Bernanke's term ends in January of 2014, and a Romney victory could have increased the chances that today's head of the U.S. central bank would have been replaced by a more hawkish figure.
An Obama victory quashed such talk, which continued to send gold gaining on Monday.
Meanwhile in Europe, the dollar fell against the euro on news Greek lawmakers approved a budget, which was bullish for gold — the U.S. dollar normally trades inversely from gold.
Approval of a budget helps open the door for the country to tap EUR31.5 billion in fresh bailout money.
Elsewhere on the Comex, silver for December delivery was down 0.07% and trading at USD32.575 a troy ounce, while copper for December delivery was down 0.33% and trading at USD3.433 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were up 0.14% at USD1,733.35 a troy ounce, up from a session low of USD1,732.55 and down from a high of USD1,735.95 a troy ounce.
Gold futures were likely to test support at USD1,727.05 a troy ounce, Friday's low, and resistance at USD1,738.75, Friday's high.
At the end of this year, the Bush-era tax cuts and other tax benefits expire at the same time pre-programmed cuts to government spending are scheduled to take effect, a combination known as a fiscal cliff that could send the country into recession if left unaddressed by Congress.
Failure to address the cliff could spell disaster for U.S. markets, which sparked safe-haven demand for gold considering the economy is set to careen over the fiscal cliff in less than two months.
Lawmakers have said they will avert disaster, but uncertainty alone has many investors on edge in that even if policymakers do steer the country away from the cliff, business owners still don't know what a compromise will mean for their taxes next year.
Gold also continued to see support stemming from President Barack Obama's reelection.
During the presidential campaign, President Obama's Republican challenger Mitt Romney said he opposed the Federal Reserve's loose policies, including quantitative easing, under which the Fed buys bonds held by banks, pumping the economy full of liquidity to depress borrowing costs to spur recovery, which weakens the dollar as a side effect.
Fed Chairman Ben Bernanke's term ends in January of 2014, and a Romney victory could have increased the chances that today's head of the U.S. central bank would have been replaced by a more hawkish figure.
An Obama victory quashed such talk, which continued to send gold gaining on Monday.
Meanwhile in Europe, the dollar fell against the euro on news Greek lawmakers approved a budget, which was bullish for gold — the U.S. dollar normally trades inversely from gold.
Approval of a budget helps open the door for the country to tap EUR31.5 billion in fresh bailout money.
Elsewhere on the Comex, silver for December delivery was down 0.07% and trading at USD32.575 a troy ounce, while copper for December delivery was down 0.33% and trading at USD3.433 a pound.