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Gold dips as U.S. hurries to resolve budget impasse

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Reuters SINGAPORE
Last Updated : Oct 16 2013 | 6:25 AM IST

SINGAPORE (Reuters) - Gold slipped for a fifth session out of seven on Wednesday as safe-haven bids slowed on hopes U.S. lawmakers would hash out a last-minute agreement to raise the debt ceiling before a Thursday deadline.

FUNDAMENTALS

* Spot gold had fallen 0.4 percent to $1,275.69 an ounce by 0022 GMT. It gained 0.6 percent on Tuesday as safe-haven buying emerged on fears the U.S. credit rating could be cut.

* Democratic and Republican leaders in the U.S. Senate could announce a deal late on Tuesday to extend the government's borrowing authority until February 7 and quickly re-open federal agencies that have been closed since October 1, a Senate aide said.

* Fitch Ratings warned it could cut the sovereign credit rating of the United States from AAA, citing the political brinkmanship over raising the debt ceiling.

* "Reckless" U.S. fiscal policy will likely force the Federal Reserve to stand pat on monetary policy this month, said Dallas Fed president Richard Fisher.

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* Gold premiums in India, the world's biggest buyer of the precious metal, hit a record $100 an ounce, about 8 percent over London prices, on a shortage of supplies to meet festival demand, traders said on Tuesday.

MARKET NEWS

* Asian stocks eased and the dollar nursed losses on Wednesday.

(Reporting by A. Ananthalakshmi; Editing by Joseph Radford)

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First Published: Oct 16 2013 | 6:16 AM IST

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