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Default Deal Creates Gold Bounce

Default Deal Creates Gold Bounce [CNBC]

Gold futures rose today after  the announcement of a  tentative deal to pass debt limit legislation. The move  reflected investors  abandoning short positions in gold, which traditionally  serves as a hedge against the dollar and U.S. Treasurys. “If you’ve been using [gold] as a trading vehicle, you want to get out, because there’s no more reason to be on the short side of gold,” said George Gero, precious metals strategist at RBC Capital Markets.

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