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Gold continues to go after the most successful week in late August because of concerns that the U.S. recession may begin, if Congress does not agree on reducing the budget deficit.
Precious metal rising in price while the dollar is under pressure from fears about threatening the U.S. financial crisis. If the White House and Congress agree, at the beginning of next year, will come into force automatically spending cuts and tax increases, estimated at $ 600 billion, which could push the U.S. economy into recession.
Euro holds above a two-month low against the dollar as Greece's ruling coalition won enough votes in parliament to approve the budget for 2013.
Today, the euro zone finance ministers meet in Brussels to discuss Greece's selection of a new portion of loans. According to German Finance Minister Wolfgang Schaeuble, the "troika" of international creditors are unlikely to present a full report on Monday on Greece.
On the physical market, jewelers reduced purchases, speculators and investors are waiting for the new price increase. Importers in India also stopped buying, because due to the weakening rupee, local prices increased to a maximum of seven weeks. The festive season, with rising demand for gold will culminate this week during festivals Dhanteras and Diwali, but the wedding season will last until December.
December futures price of gold on COMEX today rose to 1738.30 dollars per ounce.
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