Gold climbs to two-week high on budget deal

LONDON: Gold today rose to a two-week high, as commodities gained and the dollar weakened after US lawmakers passed legislation to avert the so-called fiscal cliff of automatic spending cuts and tax increases.

Gold rose 0.5 per cent to USD 1,682.55 an ounce. It reached USD 1,684.75 earlier today, the highest since December 18. Silver also rose 1.4 per cent to USD 30.75 an ounce.

Republicans vowed to fight President Barack Obama in coming weeks for spending cuts in exchange for raising the debt ceiling. Japan's Prime Minister Shinzo Abe reiterated his intention to weaken the nation's currency.