Increasing unease among investors about the prospect of a political deal to raise the nation’s debt limit pushed gold higher in Monday trading.
The U.S. government shutdown is entering its second week, but concern is growing that partisan bickering could lead to a historic U.S. default, though most analysts still believe that a compromise will ultimately be found in time to prevent that. The Treasury Department has warned that the U.S. will hit its debt ceiling on Oct. 17.
Gold futures for December delivery rose 1.2% to $1,325.10 per ounce on Monday, according to CME Group. Gold traded as high as $1,329.50 and as low as $1,307.90. Bullion closed in London at $1,325, according to BullionVault.
Silver futures for December delivery surged 2.9% to $22.39 per ounce. Monday’s high for silver was $22.50, while the low was $21.65.
Metal funds gained in Monday trading.
- The SPDR Gold Shares (GLD) rose 0.9%.
- The iShares Gold Trust (IAU) also added 0.9%.
- The iShares Silver Trust (SLV) jumped 2.9%.
Mining ETFs mostly rose during the day.
- The Market Vectors Gold Miners ETF (GDX) climbed 1.7%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) slid 0.5%.
- The Global X Silver Miners ETF (SIL) improved 1.5%.
Gold mining shares moved higher on Monday.
- Agnico-Eagle Mines (AEM) jumped 2.9%.
- Barrick Gold (ABX) added 1.4%.
- Eldorado Gold (EGO) rose 1.3%.
- Goldcorp (GG) climbed 1.1%.
- Kinross Gold (KGC) increased 2.1%.
- Newmont Mining (NEM) moved up 1.4%.
- NovaGold Resources (NG) surged 4.5%.
- Yamana Gold (AUY) gained 0.9%.
Silver mining shares climbed during the day.
- Coeur d’Alene Mines (CDE) increased 1.8%.
- Hecla Mining (HL) surged 3%.
- Pan American Silver (PAAS) gained 1.3%.
- Silver Wheaton (SLW) edged up 0.7%.
- Silver Standard Resources (SSRI) added 0.9%.
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.