LONDON (MarketWatch) — Gold futures moved sharply higher on Thursday after U.S. lawmakers averted a potential technical default by agreeing on a last-minute deal to increase the debt ceiling and put the U.S. government back to work after 16 days of shutdown.
After trading lower earlier in the session, gold for December delivery (CNS:GCZ3) jumped $24.90, or 1.9%, to $1,307.20 an ounce in electronic trade. Silver (CNS:SIZ3) added 39 cents to $21.75 an ounce
The gains came after U.S. senators reached a deal to end the impasse and raise the nation’s debt limit. Congress late Wednesday approved the Senate deal to reopen federal operations and finance the government until Jan. 15, as well as increase the borrowing limit until Feb. 7.
“The markets had anticipated a last-minute compromise of this kind. What is more, this also means that the scaling back of Fed bond purchases will be further postponed. A renewed selloff of precious metals thus failed to materialize,” analysts at Commerzbank said in a note. http://www.marketwatch.com/story/gold-gets-no...2013-10-17
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