Gold Surges on Debt Ceiling Deal

by Christopher Freeburn | October 17, 2013 4:27 pm

Gold Silver GLD IAU SLV[1]An agreement between Democrats and Republicans in Congress to extend the nation’s borrowing limit until early February and end the U.S. government shutdown sent gold up sharply in Thursday trading.

Investors appeared to interpret the deal as a signal that the government would not reduce economic stimulus — in the form of the Federal Reserve’s monthly bond-buying — in the near-term. The U.S. dollar declined against other currencies.

Gold futures for December delivery jumped 3.2% to $1,323 per ounce on Thursday, according to CME Group[2]. Gold traded as high as $1,324.20 and as low as $1,273.70. Bullion closed in London at $1,316, according to BullionVault[3].

Silver futures for December gained 2.7% to $21.95 per ounce. Thursday’s high for silver was $22.20, while the low was $21.10.

Metal funds climbed in Thursday trading.

Mining ETFs jumped during the day.

Gold mining shares advanced strongly on Thursday.

Silver mining shares moved higher during the day.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault[23] contributed to this report.

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