Prospect of Fiscal Cliff to Drive up Gold Prices

Bloomberg reported that gold prices are likely to climb, while base metals prices fall, driven by investor concerns about the “fiscal cliff”.

As quoted in the market report:

U.S. stocks saw the biggest weekly decline since June last week amid investor concern that the U.S. economy may slow if President Barack Obama and Congress fail to avert $607 billion in tax increases and spending cuts next year. Gold futures on Comex had their best week since January, gaining 3.3 percent, as the London Metal Exchange Index of six main industrial metals declined to the lowest since August.

To view the whole Bloomberg report, click here.