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 shed less than a point, ending the week higher by 1.3%, while the Dow Jones Industrial Average (+0.1%) cemented a 1.7% advance for the week. High-beta names underperformed, which weighed on the Nasdaq Composite (-0.3%) and the Russell 2000 (-1.3%).
Equity indices displayed strength in the early going with the S&P 500 tagging the 2,019 level during the opening 30 minutes of the action. However, ... More
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