Gold enjoys gains as fiscal cliff averted

Gold saw gains during Wednesday trading in the Asia-Pacific as last minute talks in the US House of Reps successfully averted the long-dreaded fiscal cliff.

CNN reports that the US House of Representatives voted on Tuesday to approve a Senate bill which would raise taxes for the wealthy while extending Bush-era cuts for most Americans.

Various estimates peg revenues to be raised under the new legislation at around $600 billion.

Despite dipping to an intra-day low of USD$1670, gold bounced back as the likelihood of a successful deal in the House of Representatives became more apparent.

Although many believed gold would benefit from failure by the House of Reps to pass the Senate bill, others also expected gold to follow the lead of stock market gains in the wake of an agreement.