Japan on Sunday night issued its latest GDP figures, which showed the country dipping back into a recession. The negative economic news could force the Bank of Japan to provide more stimulus to the country, though it's difficult to predict how much the central bank's intervention will affect global gold futures.
Japan's last round of easing on Sept. 19 caused the yellow metal to bump higher in the immediate aftermath, only to relinquish most of those early gains by the time it settled that day in New York.
The United States' so-called fiscal cliff -- the event when automatic deep spending cuts and an expiration of the Bush tax cuts and other tax cuts occurs -- has also left a question mark above investors heads.
President Barack Obama said in a press conference on Wednesday that he was willing to work with House Republicans and Senate Democrats to avert the fiscal cliff."I believe this is solvable," Obama said. "I think that fair-minded people can come to an agreement that does not cause the economy to go back into recession, that protects middle class families." In the meantime, the uncertainty, according to some analysts, is generally a positive for gold prices. Gold mining stocks were mostly lower Wednesday. Shares of NovaGold Resources (NG) were slumping 6.9%, and AngloGold Ashanti (AU) were decreasing 3.9%. Among volume leaders, Kinross Gold (KGC) was shedding 3.6%, and Barrick Gold (EGO) was off 3.5%. Gold ETF SPDR Gold Trust (GLD) was down 0.05%, and iShares Gold Trust (IAU) was losing 0.06%. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux
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