Gold slips as oil pares gains, eyes on Middle East
The so-called fiscal cliff -- a combination of government spending cuts and tax rises due to go into effect in early 2013 unless Congress acts -- could reduce the U.S. budget deficit but may also could tip the economy back into recession.
Gold hit an intraday low of around $1,722 an ounce and was at $1,725.94 by 0256 GMT, flat from Wednesday. It rallied to a three-week peak of around $1,738 on Friday, when investors bought the metal on expectations U.S. monetary policy will remain loose after President Barack Obama's re-election.
I guess somebody wants to sell gold because of lower stock markets. It's just like a kind of risk-off move, said Yuichi Ikemizu, branch manager for Standard Bank in Tokyo.
I'd rather look at the upside than the downside. I think people are basically bullish, said Ikemizu, referring to a rebound in gold prices, which fell below $1,700 last week.
U.S. gold for December dropped $3.70 an ounce to $1,726.40.
Obama said on Wednesday that Republicans would have to agree to raise taxes on the wealthy as the first step in a budget deal that would prevent a dysfunctional Washington from pushing the economy into recession.
The euro traded above a 2-month low on Thursday, while Asian stocks
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