Gold prices will be influenced by the ability of U.S. lawmakers to reduce the federal budget deficit, according to Colin P. Fenton, the global head of commodities research and strategy at JPMorgan Chase & Co. (JPM)

“The market is discounting a cut of $2 trillion, so if it’s less than $1.5 trillion, we will see gold prices surge and rise higher than $2,500,” Fenton said today at a conference in New York. Gold traded today at $1,783.40 an ounce on the Comex in New York, down from a record $1,923.70 reached on Sept. 6.

 Debarati Roy -Bloomberg  Nov 15, 2011