SINGAPORE (Reuters) - Gold inched down on Thursday, giving up overnight gains in thin post-Christmas trade, with investors keeping a close eye on talks between the White House and Congress to prevent the U.S. economy from plunging into recession next year.
FUNDAMENTALS
* Spot gold had dropped $2.83 an ounce to $1,656.66 by 0025 GMT, but still off a 4-month low struck last week.
* U.S. gold for February slipped $3.10 an ounce to $1,657.60.
* In a sign that there may be a way through deadlock in Congress, Republican House of Representatives Speaker John Boehner urged the Democrat-controlled Senate to act to pull back from the so-called fiscal cliff and offered to at least consider any bill the upper chamber produced.
MARKET NEWS
* Asian shares were capped on Thursday on investor edginess about the chances of U.S. lawmakers striking a deal to avoid a fiscal crunch by December 31, while the yen stayed under pressure on the prospect of drastic monetary easing and massive fiscal spending.
* U.S. crude futures remained close to $91 a barrel on Thursday.
(Reporting by Lewa Pardomuan; Editing by Joseph Radford)
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