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Gold Rebounds as Talks About Avoiding Fiscal Cliff Continue

November 29, 2012 at 20:28 by Vladimir Vyun

Gold rallied today, following yesterday’s huge loss, as the US politicians are trying to find a way to avoid the fiscal cliff. Timothy Geithner, the Secretary of the Treasury, meets today with congressional leaders to discuss the potential measures for preventing automatic tax increases and spending cuts. Traders also expect that the Federal Reserve will add some stimulus.

US macroeconomic data was good today, adding to the bullish momentum of gold. The US economy grew 2.7 percent in the third quarter of this year. Growth has accelerated from the second quarter’s 1.3 percent. Economic growth usually means rising inflation and that it is positive for precious metals.

Gold rallied from $1,719.30 to $1,726.21 per troy ounce as of 20:15 GMT on COMEX today. Yesterday, prices have sunk from $1,740.71 to $1,719.29 per ounce for no apparent reason.

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