Gold gained in New York on speculation the outlook for less U.S. stimulus will spur physical purchases.
The budget agreement reached by congressional Democrats and Republicans would provide only a modest boost to the U.S. economy. The psychological effect is likely to be a lot greater.
The dollar rose for a second day after retail sales gained more than forecast last month, adding to speculation the Federal Reserve will move to trim its $85 billion of monthly asset purchases at a meeting next week.
Paul Volcker said he wasn’t involved with writing the final version of the rule that bears his name.