Posted: Dec 4, 2012 1:27 PM
Updated: Dec 4, 2012 1:27 PM
Uncertainty about U.S. budget talks is chipping away at gold prices.
Gold fell 1.5 percent to finish Tuesday at $1,695.80 an ounce. That's the lowest in a month.
Republicans and Democrats remain at odds over the budget. Automatic tax increases and government spending cuts take effect Jan. 1 unless they reach an agreement. Economists believe those measures could send the U.S. back into a recession.
Investors are unsure about putting money into commodities. If the U.S. economy slows, it could cut demand for industrial metals, oil and other raw materials. Some are selling contracts for a profit while others are just staying out of the market.
In other trading, prices are lower for industrial metals, oil, wheat and corn. Soybeans are higher.