Investing.com - Gold futures were higher on Monday, as uncertainty over the U.S. government shutdown and the upcoming debt ceiling debate boosted the safe-haven appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,319.40 a troy ounce, up 0.7%.
Comex gold prices rose by as much as 0.85% earlier in the day to hit a session high of USD1,321.30 a troy ounce. The December contract ended 0.58% lower on Friday to settle at USD1,309.90 a troy ounce.
Gold futures were likely to find support at USD1,278.20 a troy ounce, the low from October 2 and resistance at USD1,344.40, the high from September 27.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the government borrowing limit unless Democrats agree to talks aimed at reducing the deficit.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
Gold prices were also boosted by a broadly weaker U.S. dollar, as dollar-priced commodities become cheaper to investors holding other currencies when the greenback declines.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 80.11, compared to the previous session’s high of 80.28.
Meanwhile, delays in U.S. economic data releases fuelled speculation that the Federal Reserve will hold off on any move to scale back its stimulus program.
Gold traders will be looking ahead to Wednesday’s minutes of the Fed’s most recent policy-setting meeting for further clues on the direction of U.S. monetary policy.
The Fed took markets by surprise last month with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
The central bank is scheduled to meet October 29-30 to review the economy and assess policy.
Elsewhere on the Comex, silver for December delivery rallied 0.95% to trade at USD21.95 a troy ounce, while copper for December delivery declined 0.65% to trade at USD3.280 a pound.
Copper prices came under pressure amid concerns over the global economic outlook.
The World Bank lowered its outlook on Chinese GDP growth to 7.5%, down from 8.3% and below the 7.5% the International Monetary Fund previously forecast.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,319.40 a troy ounce, up 0.7%.
Comex gold prices rose by as much as 0.85% earlier in the day to hit a session high of USD1,321.30 a troy ounce. The December contract ended 0.58% lower on Friday to settle at USD1,309.90 a troy ounce.
Gold futures were likely to find support at USD1,278.20 a troy ounce, the low from October 2 and resistance at USD1,344.40, the high from September 27.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the government borrowing limit unless Democrats agree to talks aimed at reducing the deficit.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
Gold prices were also boosted by a broadly weaker U.S. dollar, as dollar-priced commodities become cheaper to investors holding other currencies when the greenback declines.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 80.11, compared to the previous session’s high of 80.28.
Meanwhile, delays in U.S. economic data releases fuelled speculation that the Federal Reserve will hold off on any move to scale back its stimulus program.
Gold traders will be looking ahead to Wednesday’s minutes of the Fed’s most recent policy-setting meeting for further clues on the direction of U.S. monetary policy.
The Fed took markets by surprise last month with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
The central bank is scheduled to meet October 29-30 to review the economy and assess policy.
Elsewhere on the Comex, silver for December delivery rallied 0.95% to trade at USD21.95 a troy ounce, while copper for December delivery declined 0.65% to trade at USD3.280 a pound.
Copper prices came under pressure amid concerns over the global economic outlook.
The World Bank lowered its outlook on Chinese GDP growth to 7.5%, down from 8.3% and below the 7.5% the International Monetary Fund previously forecast.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.