* Worries over U.S. “fiscal cliff” support gold
* China seen surpassing India as top gold consumer
* South African platinum output falls 17.8 pct in Sept
By David Brough
LONDON, Nov 8 (Reuters) – Gold prices held near $1,715 an
ounce on Thursday as investors’ focus shifted from President
Barack Obama’s re-election to U.S. fiscal woes and the euro zone
debt crisis, which pressured the euro to a two-month low against
the dollar.
Worries about the fiscal cliff are supportive of safe-haven
gold, but a strong dollar offset upward pressure on prices by
making it more expensive for buyers holding other currencies.
Spot gold was at $1,715.55 an ounce by 1349 GMT, down
0.04 percent, while U.S. gold inched up 0.06 percent to
$1,715.00.
Gold prices hit a 2-1/2 week high at $1,731.40 an ounce on
Wednesday after Obama’s re-election gave markets a boost by
ending weeks of political uncertainty, but they have struggled
to maintain those gains.
In the longer term, gold is likely to benefit from
uncertainty over the looming “fiscal cliff” when nearly $600
billion worth of spending cuts and tax increases kick in with
the risk of pushing the U.S. economy into deep recession.
Continued…
