Gold Falls as Signs of Housing Gain, Budget Deal Damp Fed Bets
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Gold fell for a second day in New York on speculation that a recovery in U.S. housing and improving prospects for a budget deal in Congress will ease pressure on the Federal Reserve to expand monetary stimulus.
Builders in November capped the strongest three months for residential construction in four years, and building permits advanced to four-year high, a U.S. government report showed today. Lawmakers are in talks to avert more than $600 billion in tax increases and spending cuts set to begin next month, which is a “major risk factor” to the economy, Fed Chairman Ben S. Bernanke said last week, after announcing plans for additional stimulus.