Gold Sinks on Possible Debt Ceiling Extension

by Christopher Freeburn | October 10, 2013 4:31 pm

Gold Silver GLD IAU SLV[1]An offer from congressional Republicans to temporarily increase the U.S. debt ceiling — postponing the chance of a historic U.S. default — reassured investors Thursday. The U.S. dollar climbed during the day, while gold moved lower on fading safe-haven appeal.

The GOP proposal would give Congress and the White House an additional six weeks to reach a budget agreement without risking the nation’s credit rating and dollar’s status as a reserve currency. The Obama administration said it would consider the deal. Equities markets surged on news of the proposal.

Gold futures for December delivery fell 0.8% to $1,296.90 per ounce on Thursday, according to CME Group[2]. Gold traded as high as $1,312 and as low as $1,293.40. Bullion closed in London at $1,289, according to BullionVault[3].

Silver futures for December delivery rose half a cent to $21.90 per ounce. Thursday’s high for silver was $22.25, while the low was $21.72.

Metal funds pulled back in Thursday trading.

Mining ETFs were declined during the day.

Gold mining shares mostly sank on Thursday.

Silver mining shares were mixed 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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