Gold Gains on Debt Ceiling Worries

Wednesday's rise breaks three-day slump for the metal

   

Gold Gains on Debt Ceiling Worries

PreciousMetalsRecap Gold Gains on Debt Ceiling WorriesChances that a political standoff over America’s borrowing limit could result in a government shutdown helped prop up gold in Wednesday trading, marking the metal’s first rise in four sessions.

Bickering between congressional Republicans and the White House over spending cuts and the funding of President Barack Obama’s Affordable Care Act could prompt the government to halt operations for the first time since 1996 if a deal isn’t reached by the end of this month. According to the U.S. Treasury Secretary, the U.S. will hit its debt ceiling around Oct. 17.

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Gold futures for December delivery jumped 1.5% to $1,336.20 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,338.30 and as low as $1,316.60. Bullion closed in London at $1,335, according to BullionVault.

Silver futures for December delivery rose 1.4% to $21.89 per ounce. Wednesday’s high for silver was $21.96, while the low was $21.49.

Metal funds gained in Wednesday trading.

  • The SPDR Gold Shares (GLD) rose 0.9%.
  • The iShares Gold Trust (IAU) also increased 0.9%.
  • The iShares Silver Trust (SLV) edged up 0.4%.

Mining ETFs climbed during the day.

  • The Market Vectors Gold Miners ETF (GDX) added 1.6%.
  • The Market Vectors Junior Gold Miners ETF (GDXJ) surged 4.1%.
  • The Global X Silver Miners ETF (SIL) moved up 2.6%.

Gold mining shares advanced on Wednesday.

  • Agnico-Eagle Mines (AEM) gained 2.8%.
  • Barrick Gold (ABX) rose 0.6%.
  • Eldorado Gold (EGO) added 1.1%.
  • Goldcorp (GG) climbed 1.6%.
  • Kinross Gold (KGC) increased 2.6%.
  • Newmont Mining (NEM) moved up 1.1%.
  • NovaGold Resources (NG) rose 1.8%.
  • Yamana Gold (AUY) surged 3.1%.

Silver mining shares moved higher during the day.

  • Coeur d’Alene Mines (CDE) added 1.3%.
  • Hecla Mining (HL) rose 0.9%.
  • Pan American Silver (PAAS) moved up 0.8%.
  • Silver Wheaton (SLW) gained 2.9%.
  • Silver Standard Resources (SSRI) climbed 1.8%.

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.


Article printed from InvestorPlace Media, http://investorplace.com/2013/09/gold-gains-on-debt-ceiling-worries/.

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