A brighter outlook about the likelihood of U.S. political leaders successfully staving off threats posed by the fiscal cliff helped push up gold futures on Tuesday, according to Bloomberg.
The negotiations between President Barack Obama and Speaker of the House John Boehner as of late have seen markedly more progress as they work toward averting the $600 billion-plus tax increases and spending cuts set to kick in with the new year.
"Calmer heads typically prevail," senior broker Kurt Pfafflin with Daniels Trading said. "Doing something that will ultimately result in the resolution – typically things get pushed to where it's an agreement no one really likes but at least it's something. We could see either side get really intractable and say: 'Look we're not going to do this, we don't agree with this,' and then you have a situation where we could go off the cliff if you will, and if that's the case then we're in the unknown."
At 11:22 a.m. on Tuesday, gold futures fell 0.48 percent, an $8.14 loss to $1,690.18 per troy ounce.
MarketWatch reports Tuesday's losses were due to the yellowish metal losing some of its appeal as a safe-haven investment.
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