Gold rises on hopes US policymakers will reach a fiscal cliff agreement

<p>Gold has made gains as hopes rise that policymakers will reach a fiscal cliff agreement.</p>

Gold values have climbed in commodities trading today (December 18th) on hopes US policymakers will reach a consensus on how to avoid to full force of the looming fiscal cliff, a parcel of government spending cuts and tax hikes set to hit the world's largest economy on New Year's Eve.

The precious metal climbed from a one-week nadir, gaining with other commodities as president Barack Obama continued talks with the Republican House of Representatives speaker John Boehner.

Both political heavyweights are negotiating how to avert the fiscal cliff, which will lumber the nation with a $600 billion (£369.87 billion) bill to pay.

Mr Obama has said the full force of the monetary event will add $2,200 to each middle-class American household's annual outgoings.

At noon today, the Forex Gold Index advanced by 0.6 per cent to $1699.50 per ounce, while Dubai Gold Futures were flat at close yesterday at $1697.60 per ounce.

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