fought back after Wednesday's fall as Washington appeared closer to making a deal to avert the looming fiscal cliff. Talks continued between the two sides and there was hope a resolution could be made by year's end.
Carlos Sanchez, director of asset management with CPM Group, said the longer investors have to wait for a deal, the more likely gold prices will rise.
He said to Kitco
, "Uncertainty will support gold prices, while a resolution will bring prices down. We can see gold prices heading higher for the next week or two, rising to $1,780-$1,800."
Other analysts see higher gold prices regardless of the fiscal cliff outcome.
Economist Intelligence Unit's Caroline Bain said to Reuters
, "It could be positive for gold whichever way the negotiations go, but a rally on a speedy resolution might be quite a short-term positive, whereas any risk of prolonged sovereign stress could be a longer-lasting positive."
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