Gold Drops to One-Week Low on Bets U.S. to Avert Default
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Gold futures fell to a one-week low on speculation that the U.S. will avert a default, eroding demand for the precious metal as a haven.
The Obama administration endorsed a short debt-limit increase with no policy conditions attached, signaling potential support for a proposal by House Republicans for a monthlong reprieve from a default. Most Federal Reserve policy makers said the central bank probably will taper bond purchases this year, according to minutes released yesterday of their September meeting.