Nov. 14 (Bloomberg) -- Gold swung between gains and losses in New York on speculation investors will seek a protection of wealth as the U.S. faces a so-called fiscal cliff.
President Barack Obama is due to meet with Republican and Democrat leaders on Nov. 16 for talks on how to reduce U.S. budget deficits and avert the $607 billion in automatic spending cuts and tax increases slated to take effect Jan. 1. The Congressional Budget Office has forecast that the fiscal cliff would push the economy into a recession next year.
“The best insurance policy you can have would be to accumulate gold,” said Gavin Wendt, senior resource analyst at Mine Life Pty in Sydney. “That will be more acknowledged as the deadline approaches.”
Gold for December delivery was little changed at $1,723 an ounce by 8:02 a.m. on the Comex in New York. Prices rose as much as 0.3 percent and fell as much as 0.2 percent today. Bullion for immediate delivery lost 0.1 percent to $1,723.30 in London.
Holdings in gold-backed exchange-traded products rose 1.3 metric tons to 2,595.9 tons yesterday, near the record 2,596.1 tons set Nov. 8, data compiled by Bloomberg show.
Silver for December delivery was little changed at $32.49 an ounce after reaching $32.83 yesterday, the highest since Oct. 19. Platinum for January delivery climbed to $1,603.30 an ounce, the highest since Oct. 23, and was last down 0.3 percent at $1,581.50. Palladium for December delivery was 0.6 percent higher at $640.20 an ounce after reaching $649.90, the highest since Oct. 18.
Platinum and palladium will return to the biggest shortages in at least a decade this year as strikes and safety stoppages in South Africa and falling sales from Russia cut supplies, Johnson Matthey Plc said yesterday. Usage will outpace supply by 400,000 ounces of platinum and 915,000 ounces of palladium, it said.