Gold Sags to Three-Month Low as Budget Optimism Boosts Equities
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Gold dropped to the lowest in more than three months as signs that U.S. lawmakers may be closer to a budget deal boosted equities and reduced demand for the metal as an alternative asset.
House Speaker John Boehner and President Barack Obama are negotiating to avert the more than $600 billion in tax increases and spending cuts set to start in January. Obama proposed a plan that would cut $1.2 trillion in federal spending and raise a similar amount in taxes in the next decade, and House Republicans will meet privately later today to hear details of a backup plan being pushed by Boehner. The Standard & Poor’s 500 Index of equities reached a two-month high.