Metals Stocks: Gold Gains on Fiscal-Cliff Hopes, Weaker Dollar

Gold futures extended week-to-date gains Tuesday, returning above $1,700 an ounce, amid renewed optimism for progress on U.S. budget talks and a slightly weaker dollar.

Gold for February delivery GCG3 +0.23% rose $5.50 to $1,703.70 an ounce. The precious metal had gained $1.20, or 0.1%, to $1,698.20 an ounce in New York on Monday. 

Tuesday’s gains came after reports that U.S. President Barack Obama made a new offer to avert the U.S. fiscal cliff of looming tax hikes and severe spending cuts, moving closer to the Republicans’ position. Read: Obama reportedly makes new 'fiscal cliff' offer

The White House’s latest counterproposal includes $1.2 trillion in revenue increases and $1.22 trillion in spending reductions, Reuters reported.
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