Gold surges to new highs on debt deadlock
Prices rally once again as the stand-off in Washington shows no sign of resolution.
By Ross Tucker, TheStreet
Gold prices were once again catapulting to new highs after the congressional deadlock on the debt ceiling showed no signs of breaking over the weekend.
Gold (-GC) for August delivery added $10.70 to settle at $1,612.20 an ounce at the Comex division of the New York Mercantile Exchange. Gold reached as high as $1,624.30 in today’s session, an intraday record, and dipped as low as $1,603.80. The spot gold price was rising $14.80, according to Kitco's gold index.
"Debt ceiling talks and resulting weak stocks were bringing gold investors to increase positions," said George Gero, senior vice president with RBC Wealth Management. Gero warns that the run-up in prices may set investors up for a loss as the end of the month approaches. "Too many new longs at recent high prices, and a cautionary note is missing from all prevailing sentiments."
"Markets are spooked by the political theatre which continued in Washington over the weekend," said a report from precious metals dealer GoldCore. "An eleventh-hour solution is expected before next Tuesday's August 2 deadline, when the U.S. Treasury has said that it would not be able to borrow any more funds. At the same time, investors have cut their exposure to risky assets and the appalling fiscal situation in the U.S. is positive for gold and silver -- whether the politicians come to an agreement or not."
Gold mining stocks were mixed Monday. Kinross Gold (KGC) was down 1.1% to $17.38, while Yamana Gold (AUY) was adding 0.8% at $13.54. Agnico-Eagle (AEM) was losing 2.1% at $62.04, and Eldorado Gold (EGO) was trading up 0.7% at $18.56. The SPDR Gold Shares (GLD) ETF was 0.7% higher at $157.19.
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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