Spot gold on Wednesday hovered near a 1-1/2-week high hit in the previous session, supported by renewed worries about the euro zone's debt problem after Moody's slashed Portugal's credit rating to junk.
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Republican presidential candidate Ron Paul is worried about the falling value of the U.S. dollar and doesn't want the debt ceiling raised, he told CNBC Wednesday. He would rather see the U.S. sell off its gold reserves and cut military spending drastically.
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Fitch became the second ratings agency to threaten Belgium with a credit downgrade on Monday, saying a lack of government undermined budget efforts in one of the euro zone's most indebted states.
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