facebook
twitter
search
search

Gold jumps Monday, closes year with gains

Dec. 31, 2012 at 4:59 PM

NEW YORK, Dec. 31 (UPI) -- Gold and silver prices jumped in New York Monday after President Barack Obama said a settlement to avert the fiscal crisis was near.

The budget impasse in Washington been the primary concern among brokers for the past two weeks.

Some have dropped gold positions because it is used as a hedge against inflation and lack of a budget deal was predicted to push the U.S. economy into a recession, which would eliminate the need for inflation protection.

Traders were also selling to make money. Gold closed the year up about 7 percent, despite a drop in the past month.

On the New York Mercantile Exchange, gold for February delivery added $18.50 or 1.12 percent to $1,674.40 per troy ounce.

Silver for March delivery gained 44 cents or 1.47 percent to $30.42 an ounce.

The euro fell to $1.319 from Friday's $1.3217. The dollar rose to 86.74 yen from 85.97 yen.

Like Us on Facebook for more stories from UPI.com  
Topics: Barack Obama
Latest Headlines
Top Stories
Reddit CEO Ellen Pao apologizes for firing scandal
Report: Brazil's Petrobras wading dark waters
Oil markets hammered by Greece, Iran and China
Baker Hughes wins Johan Sverdrup contract
Southwest Airlines reaches wage-increase deal with flight attendants