by Christopher Freeburn | August 12, 2013 4:30 pm
Gold moved sharply higher in Monday trading as investors saw evidence of rising demand for physical gold in China.
A report from the China Gold Association showed a 54% increase in Chinese gold purchases during the first half of this year, compared to the same period last year. Another report out of Asia indicated that the Chinese government has quietly launched a program to stimulate economic growth in certain cities and regions.
That combined with last week’s reports of higher Chinese imports and exports suggests that China’s already strong appetite for physical gold is likely to increase in coming months.
Gold futures for December delivery jumped 1.7% to $1,334.20 per ounce on Monday, according to CME Group. Gold traded as high as $1,343.70 and as low as $1,313.50. Gold bullion closed in London at $1,338, according to BullionVault.
Silver futures for December delivery surged 4.6% to $21.40 per ounce. Monday’s high for silver was $21.44, while the low was $20.60.
Gold and silver funds increased in Monday trading.
Gold and silver mining ETFs jumped during the day.
Gold mining shares advanced on Monday.
Silver mining shares improved during the day.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.
Source URL: http://investorplace.com/2013/08/gold-rallies-on-demand-debt-ceiling/
Short URL: http://invstplc.com/1nAykxo
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.